Shaped by Booms and Busts: How the Economy Impacts CEO Careers and Management Styles
AbstractWe 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.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17590.
Date of creation: Nov 2011
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Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- G3 - Financial Economics - - Corporate Finance and Governance
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-21 (All new papers)
- NEP-BEC-2011-11-21 (Business Economics)
- NEP-HME-2011-11-21 (Heterodox Microeconomics)
- NEP-HRM-2011-11-21 (Human Capital & Human Resource Management)
- NEP-LAB-2011-11-21 (Labour Economics)
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CESifo Working Paper Series
3277, CESifo Group Munich.
- Ulrike Malmendier & Stefan Nagel, 2011.
"Depression Babies: Do Macroeconomic Experiences Affect Risk Taking?,"
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- Ulrike Malmendier & Stefan Nagel, 2009. "Depression Babies: Do Macroeconomic Experiences Affect Risk-Taking?," NBER Working Papers 14813, National Bureau of Economic Research, Inc.
- Kevin J. Murphy & Jan Zabojnik, 2006. "Managerial Capital and the Market for CEOs," Working Papers 1110, Queen's University, Department of Economics.
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