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
Cornell University
114 East Avenue
362 Sage Hall
Ithaca, NY 14853
E-Mail: lz352@cornell.edu
M2  - featured in NBER digest on 2012-03-01
AB  - We show that economic conditions when CEOs enter the labor market have lasting impact on their career paths and managerial styles. Recession CEOs take less time to become CEOs, but manage smaller firms, receive lower compensation, and move less across firms and industries. They also display more conservative styles: lower capital expenditures and R&D, less leverage, more diversification and lower overheads. These results do not seem to be driven by ex ante selection but by their labor-market experience. Recession experience at the time of labor force entry rather than during childhood explains most of the variation in management styles.
ER  -