Do CEOs Matter? Evidence from Hospitalization Events

• 成果类型: Article
• 署名作者: Bennedsen, Morten; Perez-Gonzalez, Francisco; Wolfenzon, Daniel
• 署名单位: University of Copenhagen; INSEAD Business School; Columbia University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12897
• 发表日期: 2020
• 页码: 1877-1911
• 关键词: firm; succession; turnover; Managers; style

摘要

Using variation in firms' exposure to their CEOs resulting from hospitalization, we estimate the effect of chief executive officers (CEOs) on firm policies, holding firm-CEO matches constant. We document three main findings. First, CEOs have a significant effect on profitability and investment. Second, CEO effects are larger for younger CEOs, in growing and family-controlled firms, and in human-capital-intensive industries. Third, CEOs are unique: the hospitalization of other senior executives does not have similar effects on the performance. Overall, our findings demonstrate that CEOs are a key driver of firm performance, which suggests that CEO contingency plans are valuable.