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Managing the family firm: evidence from CEOs at work

Bandiera, Oriana, Prat, Andrea, Lemos, Renata and Sadun, Raffaella (2017) Managing the family firm: evidence from CEOs at work. Economic Organisation and Public Policy Discussion Papers. Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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Abstract

We present evidence on the labor supply of CEOs, and on whether family and professional CEOs di↵er 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 di↵erences 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 di↵erences 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: http://sticerd.lse.ac.uk/
Additional Information: © 2017 The Authors
Divisions: Economics
STICERD
Subjects: H Social Sciences > HB Economic Theory
Sets: Departments > Economics
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Date Deposited: 11 Jul 2017 09:32
Last Modified: 21 Apr 2020 23:30
Funders: Columbia Business School, Harvard Business School, International Growth Center, Kauffman Foundation
URI: http://eprints.lse.ac.uk/id/eprint/83391

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