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Neighborhood CEOs

Author

Listed:
  • Amore, Mario Daniele
  • Bennedsen, Morten
  • Larsen, Birthe

Abstract

The working environment is a key driver of firms’ success. Using unique survey and register data from Denmark, we show that firms led by neighborhood CEOs – defined by physical distance and personal values - exhibit better workplace conditions as perceived both by a regulatory authority and firms’ own employees. The effect is stronger when the CEO’s and employees’ children attend the same school, pointing to social interactions as a channel for the result. Finally, we show that CEOs who emphasize neighborhood engagement adopt a management style tilted toward employees’ welfare.

Suggested Citation

  • Amore, Mario Daniele & Bennedsen, Morten & Larsen, Birthe, 2022. "Neighborhood CEOs," CEPR Discussion Papers 17333, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17333
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    • Amore, Mario Daniele & Bennedsen, Morten & Larsen, Birthe, 2022. "Neighborhood CEOs," Working Papers 10-2022, Copenhagen Business School, Department of Economics.

    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Ceos; Geographic proximity; Neighborhood values; Working environment; Management style;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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