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.
Do employees who compare themselves to the CEO matter for executive compensation? We hypothesize employees who are behindness averse and compare their wage to the CEO’s pay. Using German establishment-level wage data, we indeed show that employee...Read more
We establish that the labor market helps discipline asset managers via the impact of fund liquidations on their careers. Using hand-collected data on 1,948 professionals, we find that top managers working for funds liquidated after persistently...Read more
We document important shifts in occupational composition following merger and acquisition (M&A) activity as well as increases in median wages and wage inequality. We propose M&As act as a catalyst for skill-biased and routinebiased...Read more
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