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Managing the family firm: evidence from CEOs at work

Bandiera, Oriana and Prat, Andrea and Lemos, Renata and Sadun, Raffaella (2017) Managing the family firm: evidence from CEOs at work. Economic Organisation and Public Policy Discussion Papers, The London School of Economics and Political Science, 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
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: 11 Jul 2017 09:37
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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