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Little emperor CEOs: Firm risk and performance when CEOs grow up without siblings

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  • Wang, Tianxi
  • Gonzalez, Angelica
  • Hagendorff, Jens
  • Sila, Vathunyoo

Abstract

Using hand-collected data on the CEOs of Chinese companies, we find that managers who grow up without siblings are associated with riskier firms and worse performance. Our analysis exploits regional and time variation in China's compulsory one-child policy as a shock to fertility rates. Consistent with explanations that only-children have not experienced competition among siblings, we show that firms led by only-child CEOs underperform when industry competition is stronger. Our findings suggest that fertility policies affect the supply of managerial capital and, consequently, corporate policies and performance.

Suggested Citation

  • Wang, Tianxi & Gonzalez, Angelica & Hagendorff, Jens & Sila, Vathunyoo, 2025. "Little emperor CEOs: Firm risk and performance when CEOs grow up without siblings," Journal of Corporate Finance, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:corfin:v:90:y:2025:i:c:s0929119924001202
    DOI: 10.1016/j.jcorpfin.2024.102658
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    More about this item

    Keywords

    CEO; Only child; Firm performance; Firm risk; One-child policy; China;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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