Does the Market Value CEO Styles?
Author(s)Schoar, Antoinette; Zuo, Luo
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We study how investors perceive the skill set that different types of CEOs bring into their companies. We compare CEOs who started their careers during a recession with other CEOs. We show that the announcement return around the appointment of a recession CEO is very significant and positive, and this positive market reaction is driven by cases where a recession CEO replaces a non-recession CEO. Our results indicate that the market assigns a positive and economically meaningful value to a recession CEO, suggesting that there is a limited supply of these types of CEOs in the executive labor market.
DepartmentSloan School of Management
American Economic Review
American Economic Association
Schoar, Antoinette and Zuo, Luo “Does the Market Value CEO Styles?” American Economic Review 106, no. 5 (May 2016): 262–266. © 2016 American Economic Association
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