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Co-Worker Complemetarity and the Stability of Top Management Teams

  • Rachel M. Hayes
  • Paul Oyer
  • Scott Schaefer

We investigate the hypothesis that complementarities across co-workers (which may arise from matching or investments in specific skills) affect the value of employment relationships between senior executives and firms. We analyze the changes in the composition of top management teams when a key member of the team (the CEO) departs. Our empirical analysis establishes several facts that are consistent with co-worker complementarity being an important determinant of management team stability.

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File URL: http://www.nber.org/papers/w10350.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10350.

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Date of creation: Mar 2004
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Publication status: published as Hayes, Rachel M., Paul Oyer and Scott Schaefer. "Coworker Complementarity Of The Stability Of Top-Management Teams," Journal of Law, Economics and Organization, 2006, v22(1,Apr), 184-212.
Handle: RePEc:nbr:nberwo:10350
Note: LS LE
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