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posted by martyb on Tuesday April 07 2020, @01:50AM   Printer-friendly
from the it-all-adds-up dept.

How much CEOs matter to firm performance:

"Do CEOs matter?" has been a perennial question in management discourse. But "the CEO effect" has been notoriously difficult to isolate -- a moving target caught in the slipstream of dynamic forces that shape firm performance.

So Morten Bennedsen, INSEAD Professor of Economics and the André and Rosalie Hoffmann Chaired Professor of Family Enterprise, along with colleagues Francisco Perez-Gonzalez (ITAM and NBER) and Daniel Wolfenzon (Columbia University and NBER) decided to find out how much CEOs matter by measuring the impact on firm performance when a CEO is absent, specifically, hospitalised.

They find, in a forthcoming paper, "Do CEOs Matter? Evidence from Hospitalization Events", soon to be published in the Journal of Finance, that the financial ramifications of CEO hospitalisation are significant.

Based on data of nearly 13,000 Danish SMEs between 1996 and 2012, Bennedsen and his co-authors find that five-to-seven day hospitalisations sent firm profitability tumbling by 7% in the year of illness. Longer hospital stays of 10 days or more wreaked even deeper damage, lowering operating return on assets (OROA) by a full percentage point.

Journal Reference
Morten Bennedsen, Francisco Pérez-Gonzalez, Daniel Wolfenzon. Do CEOs Matter? Evidence from Hospitalization Events, The Journal of Finance[$] (DOI: 10.1111/jofi.12897)

See also: Phys.org

[Source]: INSEAD research


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  • (Score: 2) by cmdrklarg on Tuesday April 07 2020, @03:05PM (2 children)

    by cmdrklarg (5048) Subscriber Badge on Tuesday April 07 2020, @03:05PM (#979970)

    Yep. When some states first enacted shelter at home, liquor stores were not considered essential at first.

    Predictably, people freaked out and there were big crowds trying to get their booze before the lockdowns. They are considered essential here in MN.

    So glad I'm a social drinker. And I'm not very social.

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  • (Score: 0) by Anonymous Coward on Tuesday April 07 2020, @10:35PM (1 child)

    by Anonymous Coward on Tuesday April 07 2020, @10:35PM (#980104)

    I've started to re-think booze since the lockdown. I enjoyed it for the "fuck you" it says to everyone else - a self-indulgence basically. But after 2 weeks of it my body is trashed and I feel like shit. How pathetic is that? I'm limping around with self-inflicted wounds wanting sympathy for being a wreck? Yuck. So now I'm 3 days sober ;)

    Ha ha wears my medal?

    • (Score: 2) by JoeMerchant on Wednesday April 08 2020, @02:17AM

      by JoeMerchant (3937) on Wednesday April 08 2020, @02:17AM (#980177)

      Congratulations, you figured out in 2 weeks what it took Joe Walsh 20 years to realize: even though you _can_ drink all the time, that doesn't mean that you actually _want_ to drink all the time.

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