CEO mobility and corporate payouts

We examine how chief executive officer (CEO) mobility affects corporate payouts. exploit US state courts’ staggered adoption of the inevitable disclosure doctrine (IDD) to obtain exogenous variation in mobility. report several findings. First, we find that firms IDD-adopting states increase dividend payouts, whereas effect IDD on share repurchases is insignificant relative not states. Second, dividends concentrated run by CEOs having high ability. Third, increasing are less likely be forced leave their jobs. Fourth, early-career rather than retiring CEOs. Last, receive more favorable shareholders’ say pay votes for higher pay. Our evidence supports notion restricted induces choose a policy enhances positions with shareholders.