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.
Date issued
2016-05Department
Sloan School of ManagementJournal
American Economic Review
Publisher
American Economic Association
Citation
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
Version: Final published version
ISSN
0002-8282