Shaped by Booms and Busts: How the Economy Impacts CEO Careers and Management Styles
Antoinette Schoar,Luo Zuo +1 more
TLDR
This paper showed that economic conditions when managers enter the labor market have long-run effects on their career paths and managerial styles, such as lower investment in capital expenditures and research and development, more cost cutting, and lower leverage and working capital needs.Abstract:
We show that economic conditions when managers enter the labor market have long-run effects on their career paths and managerial styles. Managers who began their careers during recessions become CEOs more quickly, but at smaller firms. They also have more conservative styles, such as lower investment in capital expenditures and research and development, 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.read more
Citations
More filters
Journal ArticleDOI
Generalists versus specialists: Lifetime work experience and chief executive officer pay
TL;DR: The authors showed that pay is higher for chief executive officers (CEOs) with general managerial skills gathered during lifetime work experience, and they used CEOs' resumes of Standard and Poor's 1,500 firms from 1993 through 2007 to construct an index of general skills that are transferable across firms and industries.
Journal ArticleDOI
Entrepreneurial legacy: Toward a theory of how some family firms nurture transgenerational entrepreneurship
TL;DR: In this article, the authors introduce entrepreneurial legacy, which they define as the family's rhetorical reconstruction of past entrepreneurial achievements or resilience, and theorize that it motivates incumbent and next-generation owners to engage in strategic activities that foster transgenerational entrepreneurship.
Journal ArticleDOI
What doesn’t kill you will only make you more risk-loving: Early-life disasters and CEO behavior
TL;DR: This paper showed that there is a non-monotonic relation between the intensity of CEOs' early-life exposure to fatal disasters and corporate risk-taking, and that the link between CEOs' disaster experience and corporate policies has real economic consequences on firm riskiness and cost of capital.
Journal ArticleDOI
Imprinting: Toward a Multilevel Theory
TL;DR: The concept of imprinting has attracted considerable interest in numerous fields, including organizational ecology, institutional theory, network analysis, and career research, and has been applied a....
Journal ArticleDOI
Financial expert CEOs: CEO's work experience and firm's financial policies $
Claudia Custodio,Daniel Metzger +1 more
TL;DR: The authors study CEOs with a career background in finance and find that financial expert CEOs are more financially sophisticated: they are less likely to use one companywide discount rate instead of a project-specific one, they manage financial policies more actively, and their firm investments are less sensitive to cash flows.
References
More filters
Journal ArticleDOI
Upper Echelons: The Organization as a Reflection of Its Top Managers
TL;DR: In this article, the authors synthesize these previously fragmented literatures around a more general "upper echelons perspective" and claim that organizational outcomes (strategic choices and performance levels) are partially predicted by managerial background characteristics.
Journal ArticleDOI
Industry costs of equity
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this paper, the authors show that standard errors of more than 3.0% per year are typical for both the CAPM and the three-factor model of Fama and French (1993), and these large standard errors are the result of uncertainty about true factor risk premiums and imprecise estimates of the loadings of industries on the risk factors.
Journal ArticleDOI
Managing with Style: The Effect of Managers on Firm Policies
TL;DR: In this paper, the authors investigate whether and how individual managers affect corporate behavior and performance and show that managers with higher performance effects receive higher compensation and are more likely to be found in better governed environments.
Journal ArticleDOI
Job Matching and the Theory of Turnover
TL;DR: Turnover is generated by the existence of a nondegenerate distribution of the worker's productivity across different jobs as discussed by the authors, caused by the assumed variation in the quality of the employee-employer match.
Journal ArticleDOI
Managerial incentives and risk-taking ☆
TL;DR: This paper found that higher sensitivity of CEO wealth to stock volatility (vega) implements riskier policy choices, including relatively more investment in R&D, less investment in PPE, more focus, and higher leverage.