CEO behavior and firm performance

Bandiera, Oriana ORCID: 0009-0002-6817-793X, Prat, Andrea, Hansen, Stephen and Sadun, Raffaella (2020) CEO behavior and firm performance. Journal of Political Economy, 128 (4). 1325 - 1369. ISSN 0022-3808

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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:	01 Nov 2024 08:12
URI:	http://eprints.lse.ac.uk/id/eprint/101423

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