Shaped by Booms and Busts: How the Economy Impacts CEO Careers and Management Styles
By Antoinette Schoar, Luo Zuo. 2017
466 citations recorded by the source corpus.
We show that economic conditions when managers enter the labor market have long-run effects on their career paths and managerial styles. Managers who began their careers during recessions become CEOs more quickly, but at smaller firms. They also have more conservative styles, such as lower investment in capital expenditures and research and development, more cost cutting, and lower leverage and working capital needs. These recession effects appear to be largely driven by the characteristics of the CEO’s first job (recession CEOs tend to start in smaller or private firms), which suggests that the early work environment is important to the formation and selection of managers.
Subfields: Accounting, Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/7e6dbb9c06b95e625635acd7fad3d7efa19147e3
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Citations in the corpus
- Value versus growth investing: Why do different investors have different styles? (2015, unknown): “More specifically, we examine the effect on value versus growth orientation of being born between 1920 and 1929, using the same " Depression Baby " definition as Schoar and Zuo (2013).”
- Living through the Great Chinese Famine: Early-life experiences and managerial decisions ☆ (2018, background): “Schoar and Zuo (2011) show that CEOs who begin their careers during economic recessions are more conservative in their managerial decisions.”
- How Do CEOs See Their Roles? Management Philosophies and Styles in Family and Non-Family Firms (2013, unknown): “Attention has also focused on the importance to firm outcomes of the CEO position (e.g., Bennedsen et al., 2006, 2011) and on the individual characteristics and styles of CEOs (e.g., Bertrand and Schoar, 2003; Malmendier and Tate, 2008; Schoar and Zuo, 2011).”