<form name="aspnetForm" method="post" action="ceo-behavior-and-firm-performance?item=ceo-behavior-and-firm-performance" id="aspnetForm">
<input type="hidden" name="MSOWebPartPage_PostbackSource" id="MSOWebPartPage_PostbackSource" value="" />
<input type="hidden" name="MSOTlPn_SelectedWpId" id="MSOTlPn_SelectedWpId" value="" />
<input type="hidden" name="MSOTlPn_View" id="MSOTlPn_View" value="0" />
<input type="hidden" name="MSOTlPn_ShowSettings" id="MSOTlPn_ShowSettings" value="False" />
<input type="hidden" name="MSOGallery_SelectedLibrary" id="MSOGallery_SelectedLibrary" value="" />
<input type="hidden" name="MSOGallery_FilterString" id="MSOGallery_FilterString" value="" />
<input type="hidden" name="MSOTlPn_Button" id="MSOTlPn_Button" value="none" />
<input type="hidden" name="__REQUESTDIGEST" id="__REQUESTDIGEST" value="0x8914277446531CD485B7EFBA17290CFC230929B1A36995D4AB9C80FA0F18827D295BE62C40B8E4AE17A21F8605C3C0D5E9F0952632B736008B0FDF5BEB7FF0C0,19 Feb 2019 05:53:50 -0000" />
<input type="hidden" name="MSOSPWebPartManager_DisplayModeName" id="MSOSPWebPartManager_DisplayModeName" value="Browse" />
<input type="hidden" name="MSOSPWebPartManager_ExitingDesignMode" id="MSOSPWebPartManager_ExitingDesignMode" value="false" />
<input type="hidden" name="MSOWebPartPage_Shared" id="MSOWebPartPage_Shared" value="" />
<input type="hidden" name="MSOLayout_LayoutChanges" id="MSOLayout_LayoutChanges" value="" />
<input type="hidden" name="MSOLayout_InDesignMode" id="MSOLayout_InDesignMode" value="" />
<input type="hidden" name="MSOSPWebPartManager_OldDisplayModeName" id="MSOSPWebPartManager_OldDisplayModeName" value="Browse" />
<input type="hidden" name="MSOSPWebPartManager_StartWebPartEditingName" id="MSOSPWebPartManager_StartWebPartEditingName" value="false" />
<input type="hidden" name="MSOSPWebPartManager_EndWebPartEditing" id="MSOSPWebPartManager_EndWebPartEditing" value="false" />
<input type="hidden" name="__VIEWSTATE" id="__VIEWSTATE" value="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" />

<script type="text/javascript">
//<![CDATA[
var MSOWebPartPageFormName = 'aspnetForm';
var g_presenceEnabled = true;var _fV4UI=true;var _spPageContextInfo = {webServerRelativeUrl: "\u002f", webLanguage: 1033, currentLanguage: 1033, webUIVersion:4,pageListId:"{229a3fa1-d23f-4194-af04-83f712f16168}",pageItemId:24, alertsEnabled:true, siteServerRelativeUrl: "\u002f", allowSilverlightPrompt:'True'};//]]>
</script>
<script type="text/javascript" src="/_layouts/1033/init.js?rev=wgiyW1GQqDQZTITaawvYoA%3D%3D"></script>
<script src="/WebResource.axd?d=KzYTxvKcuTEp7j51joTea5GVr92AuJ4SL5aQ9QUnLuUrG7rTi8YCbgNYedMwdv6fDwv5Ou7X64HliGCav7hiwmuBylh2hjGhv6JU0lkokc63lAPUBD0MIaMGwGty9ueA82idlgs7ktVQj8-X5TCDW8nNPkA1&t=635091894137364301" type="text/javascript"></script>
<script type="text/javascript">
//<![CDATA[
var dlc_fvsi = {"DefaultViews":[],"ViewUrls":[],"WebUrl":"\/"};//]]>
</script>

<script type="text/javascript">
//<![CDATA[
function _spNavigateHierarchy(nodeDiv, dataSourceId, dataPath, url, listInContext, type) {
    CoreInvoke('ProcessDefaultNavigateHierarchy', nodeDiv, dataSourceId, dataPath, url, listInContext, type, document.forms.aspnetForm, "", "\u002fitem\u002fceo-behavior-and-firm-performance");

}
//]]>
</script>
<input type="hidden" name="__VIEWSTATEGENERATOR" id="__VIEWSTATEGENERATOR" value="7BAFC84E" />
<script type="text/javascript">RegisterSod("sp.core.js", "\u002f_layouts\u002fsp.core.js?rev=7ByNlH\u00252BvcgRJg\u00252BRCctdC0w\u00253D\u00253D");</script><script type="text/javascript">RegisterSod("sp.res.resx", "\u002f_layouts\u002fScriptResx.ashx?culture=en\u00252Dus\u0026name=SP\u00252ERes\u0026rev=b6\u00252FcRx1a6orhAQ\u00252FcF\u00252B0ytQ\u00253D\u00253D");</script><script type="text/javascript">RegisterSod("sp.ui.dialog.js", "\u002f_layouts\u002fsp.ui.dialog.js?rev=Tpcmo1\u00252FSu6R0yewHowDl5g\u00253D\u00253D");RegisterSodDep("sp.ui.dialog.js", "sp.core.js");RegisterSodDep("sp.ui.dialog.js", "sp.res.resx");</script><script type="text/javascript">RegisterSod("core.js", "\u002f_layouts\u002f1033\u002fcore.js?rev=Emb5hNX1RZMNXk9oS82yvA\u00253D\u00253D");</script>
<script type="text/javascript">
//<![CDATA[
var _spFormDigestRefreshInterval = 1440000;window.g_updateFormDigestPageLoaded = new Date(); window.g_updateFormDigestPageLoaded.setDate(window.g_updateFormDigestPageLoaded.getDate() -5);function loadMDN2() { EnsureScript('MDN.js', typeof(loadFilterFn), null); }
function loadMDN1() { ExecuteOrDelayUntilScriptLoaded(loadMDN2, 'sp.ribbon.js'); }
_spBodyOnLoadFunctionNames.push('loadMDN1');//]]>
</script>
<script type="text/javascript">RegisterSod("sp.runtime.js", "\u002f_layouts\u002fsp.runtime.js?rev=IGffcZfunndj0247nOxKVg\u00253D\u00253D");RegisterSodDep("sp.runtime.js", "sp.core.js");RegisterSodDep("sp.runtime.js", "sp.res.resx");</script><script type="text/javascript">RegisterSod("sp.js", "\u002f_layouts\u002fsp.js?rev=\u00252B4ZEyA892P3T0504qi0paw\u00253D\u00253D");RegisterSodDep("sp.js", "sp.core.js");RegisterSodDep("sp.js", "sp.runtime.js");RegisterSodDep("sp.js", "sp.ui.dialog.js");RegisterSodDep("sp.js", "sp.res.resx");</script><script type="text/javascript">RegisterSod("cui.js", "\u002f_layouts\u002fcui.js?rev=OOyJv78CADNBeet\u00252FvTvniQ\u00253D\u00253D");</script><script type="text/javascript">RegisterSod("inplview", "\u002f_layouts\u002finplview.js?rev=WB6Gy8a027aeNCq7koVCUg\u00253D\u00253D");RegisterSodDep("inplview", "core.js");RegisterSodDep("inplview", "sp.js");</script><script type="text/javascript">RegisterSod("ribbon", "\u002f_layouts\u002fsp.ribbon.js?rev=F\u00252BUEJ66rbXzSvpf7nN69wQ\u00253D\u00253D");RegisterSodDep("ribbon", "core.js");RegisterSodDep("ribbon", "sp.core.js");RegisterSodDep("ribbon", "sp.js");RegisterSodDep("ribbon", "cui.js");RegisterSodDep("ribbon", "sp.res.resx");RegisterSodDep("ribbon", "sp.runtime.js");RegisterSodDep("ribbon", "inplview");</script><script type="text/javascript">RegisterSod("sp.ui.policy.resources.resx", "\u002f_layouts\u002fScriptResx.ashx?culture=en\u00252Dus\u0026name=SP\u00252EUI\u00252EPolicy\u00252EResources\u0026rev=YhBHGmUAGyJ3lAgSdE4V\u00252Fw\u00253D\u00253D");</script><script type="text/javascript">RegisterSod("mdn.js", "\u002f_layouts\u002fmdn.js?rev=gwmFFJ2\u00252FfFacqXWAqG\u00252FqKg\u00253D\u00253D");RegisterSodDep("mdn.js", "sp.core.js");RegisterSodDep("mdn.js", "sp.runtime.js");RegisterSodDep("mdn.js", "sp.js");RegisterSodDep("mdn.js", "cui.js");RegisterSodDep("mdn.js", "ribbon");RegisterSodDep("mdn.js", "sp.ui.policy.resources.resx");</script>
<script type="text/javascript">
//<![CDATA[

function _spNavigateHierarchyEx(nodeDiv, dataSourceId, dataPath, url, listInContext, type, additionalQString) {
    SetAdditionalNavigateHierarchyQString(additionalQString);
    g_originalSPNavigateFunc(nodeDiv, dataSourceId, dataPath, url, listInContext, type);
}

g_originalSPNavigateFunc = _spNavigateHierarchy;
_spNavigateHierarchy = _spNavigateHierarchyEx;
var _fV4UI = true;//]]>
</script>
<script type="text/javascript">RegisterSod("msstring.js", "\u002f_layouts\u002f1033\u002fmsstring.js?rev=QtiIcPH3HV7LgVSO7vONFg\u00253D\u00253D");</script><script type="text/javascript">RegisterSod("browserScript", "\u002f_layouts\u002f1033\u002fnon_ie.js?rev=EVTj1bu32\u00252FMla6SDN\u00252FsNTA\u00253D\u00253D");</script>
<script type="text/javascript">
//<![CDATA[
var __wpmExportWarning='This Web Part Page has been personalized. As a result, one or more Web Part properties may contain confidential information. Make sure the properties contain information that is safe for others to read. After exporting this Web Part, view properties in the Web Part description file (.WebPart) by using a text editor such as Microsoft Notepad.';var __wpmCloseProviderWarning='You are about to close this Web Part.  It is currently providing data to other Web Parts, and these connections will be deleted if this Web Part is closed.  To close this Web Part, click OK.  To keep this Web Part, click Cancel.';var __wpmDeleteWarning='You are about to permanently delete this Web Part.  Are you sure you want to do this?  To delete this Web Part, click OK.  To keep this Web Part, click Cancel.';//]]>
</script>
</form>

Skip to Main Content

28 Mar 2017Working Paper Summaries

CEO Behavior and Firm Performance

by Oriana Bandiera, Stephen Hansen, Andrea Pratt, and Raffaella Sadun

This paper combines a new survey methodology with a machine learning algorithm to measure the behavior of CEOs in large samples. Results show that larger and more complex firms require CEOs with a more coordinative—and less micromanaging—behavior. Inefficiencies in the way CEOs match with firms have important consequences for firm productivity.

Author Abstract

We measure the behavior of 1,114 CEOs in Brazil, France, Germany, India, UK, and U.S. using a new methodology that combines (i) data on every activity the CEOs undertake during one workweek and (ii) a machine learning algorithm that projects these data onto scalar CEO behavior indices. Low values of the index are associated with plant visits and one-on-one meetings with production or suppliers, while high values correlate with meetings with high-level C-suite executives and several functions together, both from inside and outside the firm. We use these data to study the correlation between CEO behavior and firm performance within the framework of a firm-CEO assignment model. We show results consistent with significant firm-CEO assignment frictions, which appear to be more severe in lower-income regions. The productivity loss generated by inefficient assignment is equal to 13% of the productivity gap between high- and low-income countries in our sample.

Paper Information

Full Working Paper Text
Working Paper Publication Date: March 2017
HBS Working Paper Number: HBS Working Paper #17-083
Faculty Unit(s): Strategy

Trending

- 07 Feb 2019
- Book
How Big Companies Can Outrun Disruption
- 11 Sep 2017
- Research & Ideas
Why Employers Favor Men
- 28 Jan 2019
- Research & Ideas
Forget Cash. Here Are Better Ways to Motivate Employees
- 16 Jul 2018
- Research & Ideas
Kids of Working Moms Grow into Happy Adults
- 14 Feb 2019
- Cold Call Podcast
The Delicious History of Hershey Chocolate

Raffaella Sadun

Raffaella Sadun

Thomas S. Murphy Associate Professor of Business Administration

Contact

→ More Articles

Find Related Articles

Sign up for our weekly newsletter

Interested in improving your business? Learn about fresh research and ideas from Harvard Business School faculty.