TY  - JOUR
AU  - Schoar,Antoinette
AU  - Zuo,Luo
TI  - Shaped by Booms and Busts: How the Economy Impacts CEO Careers and Management Styles
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 17590
PY  - 2011
Y2  - November 2011
DO  - 10.3386/w17590
UR  - http://www.nber.org/papers/w17590
L1  - http://www.nber.org/papers/w17590.pdf
N1  - Author contact info:
Antoinette Schoar
MIT Sloan School of Management
100 Main Street, E62-638
Cambridge, MA  02142
Tel: 617/253-3763
Fax: 617/258-6855
E-Mail: aschoar@mit.edu

Luo Zuo
Johnson Graduate School of Management 
Cornell University 
114 East Avenue
349 Sage Hall 
Ithaca, NY 14853
E-Mail: luozuo@cornell.edu
M2  - featured in NBER digest on 2012-03-01
AB  - We show that economic conditions when CEOs enter the labor market have long-run effects on their career paths and managerial styles. Managers who begin their careers during recessions become CEOs more quickly, but at smaller firms. They also have more conservative styles, such as lower investment in capex and R&D, more cost cutting, and lower leverage and working capital needs. These recession effects appear to be largely driven by the characteristics of the CEO’s first job (recession CEOs tend to start in smaller or private firms), which suggests that the early work environment is important to the formation and selection of managers.
ER  -