Shaped by Booms and Busts: How the Economy Impacts CEO Careers and Management Styles
Economic conditions when CEOs enter the labor market have a lasting impact on their career paths and managerial styles. Managers who begin their careers during a recession become CEOs more quickly, but at smaller firms. Recession CEOs also display a more conservative style, with less investment in capex and R&D, more cost cutting, and lower leverage, working capital needs, sales growth, and stock return volatility. The career effects appear to be driven by differences in these CEOs’ first jobs, and suggest that the early work environment is important to the formation and selection of managers.
|Date of creation:||Nov 2011|
|Date of revision:|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carola Frydman & Dirk Jenter, 2010.
NBER Working Papers
16585, 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.
- Ulrike Malmendier & Stefan Nagel, 2011.
"Depression Babies: Do Macroeconomic Experiences Affect Risk Taking?,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 126(1), pages 373-416.
- Ulrike Malmendier & Stefan Nagel, 2009. "Depression Babies: Do Macroeconomic Experiences Affect Risk-Taking?," NBER Working Papers 14813, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:17590. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.