Journal of Political Economy Vol. 128 No. 4 2020
CEO Behavior and Firm Performance
open access
Abstract
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 multifunction, 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 difference. Structural estimates indicate that productivity differentials are due to mismatches rather than to leaders being better for all firms.
- DOI
- 10.1086/705331
- Volume
- 128
- Issue
- 4
- Pages
- 1325-1369
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref