CEO Behavior and Firm Performance

DSpace/Manakin Repository

CEO Behavior and Firm Performance

Citable link to this page

 

 
Title: CEO Behavior and Firm Performance
Author: Bandiera, Oriana; Hansen, Stephen; Prat, Andrea; Sadun, Raffaella

Note: Order does not necessarily reflect citation order of authors.

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.
Full Text & Related Files:
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.
Terms of Use: This article is made available under the terms and conditions applicable to Open Access Policy Articles, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#OAP
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:30838134
Downloads of this work:

Show full Dublin Core record

This item appears in the following Collection(s)

 
 

Search DASH


Advanced Search
 
 

Submitters