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CEO behavior and firm performance

Bandiera, Oriana, Hansen, Stephen, Prat, Andrea and Sadun, Raffaella (2020) CEO behavior and firm performance. Journal of Political Economy, 128 (4). 1325 - 1369. ISSN 0022-3808

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Identification Number: 10.1086/705331

Abstract

We develop a new method to measure CEO behavior in large samples via a survey that collects high-frequency, high-dimensional diary data and a machine learning algorithm that estimates behavioral types. Applying this method to 1,114 CEOs in six countries reveals two types: “leaders,” who do multifunction, high-level meetings, and “managers,” who do individual meetings with core functions. Firms that hire leaders perform better, and it takes three years for a new CEO to make a difference. Structural estimates indicate that productivity differentials are due to mismatches rather than to leaders being better for all firms.

Item Type: Article
Official URL: https://www.journals.uchicago.edu/toc/jpe/current
Additional Information: © 2020 The University of Chicago
Divisions: Economics
Centre for Macroeconomics
STICERD
Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Date Deposited: 20 Aug 2019 17:18
Last Modified: 28 Jun 2020 23:27
URI: http://eprints.lse.ac.uk/id/eprint/101423

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