A Fortune article https://fortune.com/2015/04/14/ceo-indiscretions-cost/ https://fortune.com/2015/04/14/ceo-indiscretions-cost/ summarized an academic paper "Th

A Fortune article https://fortune.com/2015/04/14/ceo-indiscretions-cost/ https://fortune.com/2015/04/14/ceo-indiscretions-cost/ summarized an academic paper "The Consequences of Managerial Indiscretions: Sex, Lies, and Firm Value" https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1573327 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1573327. "Knee jerk reactions to the announcement of an extramarital affair or lying about qualifications would seem obvious, and an immediate damage to a company’s stock price is almost inevitable. But the damage lasts longer. Indiscretions are not just associated with short-term stock price damage. Stock prices at companies that suffered from CEO mess-ups fell in total by between 11% and 14% over the subsequent 12 months. Firms with badly behaved CEOs also have poorer operating performance during the fiscal year in which the CEO is found out. And such companies are also far more likely to be sued by shareholders, and they are more likely to the subject of an investigation by the Department of Justice or the Securities and Exchange Commission, or both."