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CEO Stress, Aging, and Death

Author

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  • Borgschulte, Mark

    (University of Illinois at Urbana-Champaign)

  • Guenzel, Marius

    (Wharton School, University of Pennsylvania)

  • Liu, Canyao

    (Yale University)

  • Malmendier, Ulrike

    (University of California, Berkeley)

Abstract

We assess the long-term effects of managerial stress on aging and mortality. First, we show that exposure to industry distress shocks during the Great Recession produces visible signs of aging in CEOs. Applying neural-network based machine-learning techniques to pre- and post-distress pictures, we estimate an increase in so-called apparent age by one year. Second, using data on CEOs since the mid-1970s, we estimate a 1.1-year decrease in life expectancy after an industry distress shock, but a two-year increase when anti-takeover laws insulate CEOs from market discipline. The estimated health costs are significant, also relative to other known health risks.

Suggested Citation

  • Borgschulte, Mark & Guenzel, Marius & Liu, Canyao & Malmendier, Ulrike, 2023. "CEO Stress, Aging, and Death," IZA Discussion Papers 16366, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16366
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    More about this item

    Keywords

    managerial stress; life expectancy; apparent-age estimation; job demands; industry distress; visual machine-learning; corporate governance;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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