Publication:

CEO Behavior and Firm Performance

Thumbnail Image

Open/View Files

17-083.pdf (2.5 MB)

Date

2017-03-21

Authors

Published Version

10.1086/705331

Journal Title

Journal ISSN

Volume Title

Publisher

The Harvard community has made this article openly available. Please share how this access benefits you.

Research Projects

Organizational Units

Journal Issue

Citation

Bandiera, Oriana, Stephen Hansen, Andrea Pratt, and Raffaella Sadun. "CEO Behavior and Firm Performance." Harvard Business School Working Paper, No. 17-083, March 2017.

Abstract

We measure the behavior of 1,114 CEOs in Brazil, France, Germany, India, UK and US using a new methodology that combines (i) data on every activity the CEOs undertake during one workweek and (ii) a machine learning algorithm that projects these data onto scalar CEO behavior indices. Low values of the index are associated with plant visits, and one-on-one meetings with production or suppliers, while high values correlate with meetings with high-level C-suite executives, and several functions together, both from inside and outside the firm. We use these data to study the correlation between CEO behavior and firm performance within the framework of a firm-CEO assignment model. We show results consistent with significant firm-CEO assignment frictions, which appear to be more severe in lower-income regions. The productivity loss generated by inefficient assignment is equal to 13% of the productivity gap between high- and low-income countries in our sample.

Description

Other Available Sources

http://doi.org/10.3386/w23248

Research Data

Keywords

Terms of Use

This article is made available under the terms and conditions applicable to Open Access Policy Articles (OAP), as set forth at Terms of Service

URI

http://nrs.harvard.edu/urn-3:HUL.InstRepos:30838134

Collections

HBS Scholarly Articles

Endorsement

Review

Supplemented By

Related Stories