NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

CEO Behavior and Firm Performance

Oriana Bandiera, Stephen Hansen, Andrea Prat, Raffaella Sadun

NBER Working Paper No. 23248
Issued in March 2017, Revised in September 2017
NBER Program(s):Productivity, Innovation, and Entrepreneurship

We measure the behavior of 1,114 CEOs in six countries parsing granular CEO diary data through an unsupervised machine learning algorithm. The algorithm uncovers two distinct behavioral types: “leaders” and “managers”. Leaders focus on multi-function, high-level meetings, while managers focus on one-to-one meetings with core functions. Firms with leader CEOs are on average more productive, and this difference arises only after the CEO is hired. The data is consistent with horizontal differentiation of CEO behavioral types, and firm-CEO matching frictions. We estimate that 17% of sample CEOs are mismatched, and that mismatches are associated with significant productivity losses.

download in pdf format
   (1722 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23248

Users who downloaded this paper also downloaded* these:
Graham, Harvey, Grennan, and Rajgopal w23255 Corporate Culture: Evidence from the Field
Bloom, Brynjolfsson, Foster, Jarmin, Patnaik, Saporta-Eksten, and Van Reenen w23300 What Drives Differences in Management?
Begenau and Palazzo w23249 Firm Selection and Corporate Cash Holdings
Gow, Kaplan, Larcker, and Zakolyukina w22435 CEO Personality and Firm Policies
Clark, Pinkovskiy, and Sala-i-Martin w23323 China's GDP Growth May be Understated
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us