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Charles Hadlock - Michigan State University. East Lansing, MI, US

Charles Hadlock Charles Hadlock

Professor of Finance | Michigan State University


Expert in Corporate Governance and Corporate Finance






The Broad College Finance MBA with Charles Hadlock



Dr. Charles Hadlock is currently the Frederick S. Addy Distinguished Chair in Finance at the Eli Broad College of Business at Michigan State University. He has held prior faculty appointments at the Universities of Florida, Illinois, and Virginia and visiting faculty positions at the Universities of Michigan and Chicago. He received his Ph.D. in Economics in 1994 from M.I.T. and his B.A. in Economics and Mathematics from the University of Michigan in 1989. Dr. Hadlock's research is concentrated in the areas of corporate finance and corporate governance. His papers have appeared in leading journals in finance, economics, and accounting including the Journal of Finance, the Review of Financial Studies, the Journal of Accounting and Economics, the Journal of Business, the Journal of Financial and Quantitative Analysis, and the RAND Journal of Economics. Dr. Hadlock received the 2011 and 2014 Michael Brennan Prize for the best paper published in the Review of Financial Studies. In 1997 he won the Merton Miller prize for the most outstanding research published in the Journal of Business. He has won several teaching awards including winning the Executive MBA Teaching Award six times.

Industry Expertise (4)

Financial Services

Capital Markets


Corporate Leadership

Areas of Expertise (9)

Financial Intermediation

Management Incentives and Labor Markets



Corporate Governance

Corporate Finance


Business Finance

Capital Structure

Accomplishments (4)

Distinguished Referee Award (professional)

Review of Financial Studies

Michael Brennan Award for Best Paper (professional)

Review of Financial Studies

Michael Brennan Award for Best Paper (professional)

Review of Financial Studies

Broad School EMBA Teaching Excellence Award (professional)

Class of 2006, 2007, 2013, 2014, 2016, 2017

Education (2)

Massachusetts Institute of Technology: PhD, Economics 2004

University of Michigan,: BA, Economics and Mathematics 1989

Journal Articles (4)

New Evidence on Managerial Labor Markets: An Analysis of CEO Retreads

Journal of Corporate Finance

C. Fee, C. Hadlock, and J. Pierce

2018 We examine career outcomes of CEOs subsequent to turnover. CEOs often resurface after turnover, but they secure positions that are inferior to their prior posts. Success in the retread market is unrelated to prior employer performance and board composition. CEOs who were particularly attached to their prior employer tend to have the poorest subsequent job prospects. These results suggest a generally efficient CEO turnover process in which firms dismiss CEOs of low ability. As CEOs acquire specific human capital over time, their outside options and bargaining power appear to diminish, offering a potential explanation for the specialist CEO compensation discount.

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Panel data estimation in finance: testable assumptions and parameter (in)consistency

Journal of Financial and Quantitative Analysis

W. Grieser and Charles Hadlock

2016 We investigate the strict exogeneity assumption, a necessary condition for estimator consistency in many finance panel settings. We outline tests for strict exogeneity in both traditional (non-IV) and IV settings. When we apply these tests in common traditional finance panel regressions, we find that the strict exogeneity assumption is often rejected, suggesting large inference errors. We test for strict exogeneity in specific finance IV panel settings and illustrate the potential for these tests to help confirm, or rule out, the validity of common panel IV estimators. We offer a set of recommendations to address the strict exogeneity issue in finance research.

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Robust Models of CEO Turnover: New Evidence on Relative Performance Evaluation

Review of Corporate Finance Studies

C. Fee, C. Hadlock, J. Huang, and J. Pierce

2015 We examine the robustness of empirical models and findings concerning CEO turnover. We show that the sensitivity of turnover to abnormal firm performance is an extremely robust result. In contrast, evidence indicating a relation between turnover and industry performance is both weak and fragile. We show that small changes in turnover modeling choices can affect inferences in a large way. Our evidence casts substantial doubt on the hypothesis that there is a large industry performance component to turnover decisions. We use our findings to offer some general prescriptions for checking robustness results in CEO turnover research.

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Managers with and without Style: Evidence using Exogenous Variation

Review of Financial Studies

C. Edward Fee, Charles J. Hadlock, and Joshua R. Pierce

2013 In a large panel of Compustat firms, we find that firm policy changes after exogenous CEO departures do not display abnormally high levels of variability, casting doubt on the presence of idiosyncratic-style effects in policy choices. After endogenous CEO departures, we do detect abnormally large policy changes. These changes are larger when the firm is likely to draw from a deeper pool of replacement CEO candidates, suggesting the presence of causal-style effects that are anticipated by the board. Our evidence suggests that managerial styles are not transferred across employers and that standard F-tests are inappropriate for identifying style effects.

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