We find that firms report significantly higher cash holdings in the 4th fiscal quarter, followed by subsequent reversal. Such a phenomenon cannot be explained by traditional determinants of cash holdings, calendar year-end effect, and the choice of fiscal year-end quarter. We identify real,...

We investigate empirically a market-based explanation for the rise in recent years in external CEO hiring and compensation. Consistent with the market-based theory, we find that firms in industries relying on general managerial skills are more likely to hire CEOs externally than firms in...