CEO Behavior and Firm Performance
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 multi-func...
| Main Authors: | , , , |
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| Format: | Journal article |
| Published: |
2018
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| _version_ | 1797054617351094272 |
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| author | Bandiera, O Hansen, S Prat, A Sadun, R |
| author_facet | Bandiera, O Hansen, S Prat, A Sadun, R |
| author_sort | Bandiera, O |
| collection | OXFORD |
| description | 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 multi-function, 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 di↵erence. Structural estimates indicate that productivity di↵erentials are due to mismatches rather than leaders being better for all firms. |
| first_indexed | 2024-03-06T18:59:44Z |
| format | Journal article |
| id | oxford-uuid:131966ec-c113-4217-ac80-7059d797eff5 |
| institution | University of Oxford |
| last_indexed | 2024-03-06T18:59:44Z |
| publishDate | 2018 |
| record_format | dspace |
| spelling | oxford-uuid:131966ec-c113-4217-ac80-7059d797eff52022-03-26T10:11:57ZCEO Behavior and Firm PerformanceJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:131966ec-c113-4217-ac80-7059d797eff5Symplectic Elements at Oxford2018Bandiera, OHansen, SPrat, ASadun, RWe 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 multi-function, 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 di↵erence. Structural estimates indicate that productivity di↵erentials are due to mismatches rather than leaders being better for all firms. |
| spellingShingle | Bandiera, O Hansen, S Prat, A Sadun, R CEO Behavior and Firm Performance |
| title | CEO Behavior and Firm Performance |
| title_full | CEO Behavior and Firm Performance |
| title_fullStr | CEO Behavior and Firm Performance |
| title_full_unstemmed | CEO Behavior and Firm Performance |
| title_short | CEO Behavior and Firm Performance |
| title_sort | ceo behavior and firm performance |
| work_keys_str_mv | AT bandierao ceobehaviorandfirmperformance AT hansens ceobehaviorandfirmperformance AT prata ceobehaviorandfirmperformance AT sadunr ceobehaviorandfirmperformance |