BIGFI/Finance Seminar with Heather Tookes, Yale School of Management
The Department of Finance is proud to announce the upcoming seminar with Heather Tookes, Yale School of Management.
Heather Tookes will present: Misconduct Synergies
Location:
Solbjerg Plads 3
2000 Frederiksberg
Room: SPs03
ABSTRACT: Do corporate control transactions discipline the labor force? We find that new disclosures of employee misconduct in the investment advisory industry drop by between 28 and 37 percent following mergers. Both targets and acquirers have better misconduct records than the industry’s average firm, consistent with assortative matching (Rhodes-Kropf and Robinson (2008)) on misconduct. The merged firms experience further improvement in employee misconduct that is driven mainly by separations of high misconduct employees at the target firm. This suggests improved disciplinary mechanisms imposed on target-firm employees post-merger.