000			01496nam a22001697a 4500
008			190311b xxu||||| |||| 00| 0 eng d
022			_a0304-405X
245			_aThe consequences of managerial indiscretions: Sex, lies, and firm value / by Brandon N. Cline, Ralph A. Walkling & Adam S. Yore _cBrandon N. Cline, Ralph A. Walkling & Adam S. Yore
260			_aAmsterdam _bElsevier _cFebruary 2018
300			_aPages 389-415
440			_aJournal of Financial Economics _v127 (2) _x0304-405X
500			_aAbstract Personal managerial indiscretions are separate from a firm's business activities but provide information about the manager's integrity. Consequently, they could affect counterparties’ trust in the firm and the firm's value and operations. We find that companies of accused executives experience significant wealth deterioration, reduced operating margins, and lost business partners. Indiscretions are also associated with an increased probability of unrelated shareholder-initiated lawsuits, Department of Justice and Securities and Exchange Commission investigations, and managed earnings. Further, chief executive officers and boards face labor market consequences, including forced turnover, pay cuts, and lower shareholder votes at re-election. Indiscretions occur more often at poorly governed firms where disciplinary turnover is less likely.
690			_aManagerial indiscretions
690			_aManagement quality
690			_aEarnings management
942			_2lcc _cSE
999			_c361340 _d361340