Do Lawyers Make Better CEOs Than MBAs?
AUGUST 24, 2017
A nearly $150 million settlement is pending for the fake-account scandal that roiled the bank last year, and a new scandal has emerged: Recently it has been alleged that thousands of customers were signed up for insurance without their knowledge. We attempted to account for factors such as this in order to isolate the impact of a CEO with a law degree. One measure we used was current accruals, where managers accelerate recognition of revenues and delay recognition of expenses.