论文标题：Stay safe? Restrictions on managers’ outside employment opportunities and firm risk

发表时间：2023年3月

论文所有作者：Wenqiao Zhang （张文樵）

期刊名及所属分类：Applied Economics Letters，SSCI

英文摘要：We provide empirical evidence showing that for managers with more potential outside employment opportunities, adoption of the Inevitable Disclosure Doctrine (IDD) causes them to just ‘stay safe’ by taking on less risk because of reduced labour mobility. Moreover, managers lower firm risk through reduced R&D intensity, capital expenditure, and more diversifying acquisitions. Consequently, these firms have a lower value after the adoption of the IDD. Overall, we document a novel unintended consequence of the recognition of the IDD, specifically, its effect on firm risk and investment policies for managers with more potential outside employment opportunities.