CEO behavior and firm performance

Oriana Bandiera, Andrea Prat, Stephen Hansen and Raffaella Sadun

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

JEL-codes: J50 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2020-04-01
New Economics Papers: this item is included in nep-bec, nep-big, nep-cwa, nep-eff and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (67)

Published in Journal of Political Economy, 1, April, 2020, 128(4), pp. 1325 - 1369. ISSN: 0022-3808

Downloads: (external link)
http://eprints.lse.ac.uk/101423/ Open access version. (application/pdf)

Related works:
Journal Article: CEO Behavior and Firm Performance (2020)
Working Paper: CEO Behavior and Firm Performance (2017)
Working Paper: CEO Behavior and Firm Performance (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:101423

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