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Full-Text Articles in Business
Impact Of Ceo Industry-Specific Vs. General Managerial Experience On Firm Performance, Risk-Taking Behavior And Ceo Compensation, Junnatun Naym
Impact Of Ceo Industry-Specific Vs. General Managerial Experience On Firm Performance, Risk-Taking Behavior And Ceo Compensation, Junnatun Naym
Student Honors Theses and MBA Research Papers
This paper investigates the impact of CEO cross-industry and specific-industry experience on firm performance, risk-taking behavior, and CEO compensation. Using hand-collected data for a large cross-section of CEOs over 1992-2017, we find that CEOs with cross-industry experience are not likely to help improve firm performance, tend to invest less on R&D, and are likely to receive pay premium. On the other hand, we document a nonmonotonic relation between CEOs’ specific-industry experience and firm performance as well as R&D. Particularly, CEOs’ specific-industry experience leads to higher firm performance and R&D investments until it reaches a certain threshold, especially among high growth …