Renee Adams, Matti Keloharju, Samuli Knüpfer Are CEOs Born Leaders? Lessons from Traits of a Million Individuals (01 Sep 2016) Available at ECGI: http://ecgi.global/working-paper/are-ceos-born-leaders-lessons-traits-million-individuals
What makes a CEO? Our study combines a near-exhaustive sample of CEOs of Swedish companies with data on their cognitive and non-cognitive ability and height at age 18. On average, CEOs, particularly large-company CEOs, have much higher trait values than the population and somewhat higher values than people in other high-skill professions.
Yet, more than one hundred managers and executives in the corporate sector dominate each median largecompany CEO. Only about one tenth of the pay premium large-firm CEOs enjoy over the population can be attributed to the labor market returns to the three traits.
This paper uses the staggered adoption of the Sarbanes-Oxley Act of 2002 for a difference-in-difference identification of the impact of corporate governance on hedging. In a large panel of listed US firms, we focus on two indexes of the legally...Read more
We study the role of facial appearance in corporate director (re-)elections by means of director photographs published in annual reports. We find that shareholders use inferences from facial appearance in corporate elections, as a better (higher...Read more
The executive compensation literature reports inconclusive results for CEO option-based compensation’s impact on firm value. We hypothesize that having major customers raises the costs associated with option compensation, leading to a lower...Read more
We study if a CEO’s equity-based compensation affects the expected value generation in takeovers. When the objectives of management and shareholders are more aligned, as proxied by the use of equity-based compensation, more value-maximizing...Read more