Managing the family firm: evidence from CEOs at work

Bandiera, Oriana ORCID: 0009-0002-6817-793X, Lemos, Renata, Prat, Andrea and Sadun, Raffaella (2013) Managing the family firm: evidence from CEOs at work. CEP Discussion Papers (CEPDP1250). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

We present evidence on the labor supply of CEOs, and on whether family and professional CEOs differ on this dimension. We do so through a new survey instrument that allows us to codify CEOs’ diaries in a detailed and comparable fashion, and to build a bottom-up measure of CEO labor supply. The comparison of 1,114 family and professional CEOs reveals that family CEOs work 9% fewer hours relative to professional CEOs. Hours worked are positively correlated with firm performance, and differences between family and non-family CEOs account for approximately 18% of the performance gap between family and non-family firms. We investigate the sources of the differences in CEO labor supply across governance types by exploiting firm and industry heterogeneity, and quasi-exogenous meteorological and sport events. The evidence suggests that family CEOs value–or can pursue–leisure activities relatively more than professional CEOs.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2013 The Author(s)
Divisions:	Economics Centre for Economic Performance
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor
JEL classification:	M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M12 - Personnel Management L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity
Date Deposited:	22 Feb 2024 10:48
Last Modified:	01 Nov 2024 05:00
URI:	http://eprints.lse.ac.uk/id/eprint/121789

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