I've written before about our paper Sex, Lies, and Firm Value. Personal integrity matters and signals of low integrity in an executive's personal life do indeed signal subsequent corporate misdeeds. This implication is not lost on the market which lowers firm value immediately. It is still a working paper and we are pursuing several interesting new results. The current draft of the paper can be downloaded here.) It is nice to see that it is getting some attention in the financial press. See this story in Fortune.com
All the best,
Ralph
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