PhD CEOs and firm performance

Andrew Urquhart; Hanxiong Zhang

doi:10.1111/eufm.12316

PhD CEOs and firm performance

Andrew Urquhart
, Hanxiong Zhang

University of Reading
University of Surrey

Allbwn ymchwil: Cyfraniad at gyfnodolyn › Erthygl › adolygiad gan gymheiriaid

41 Wedi eu Llwytho i Lawr (Pure)

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This paper investigates the relationship between the education of a Chief Executive Officer (CEO) and firm performance and provides robust evidence that firms led by CEOs with PhDs outperform their peers. We find that CEOs with PhDs increase firm performance by 3.03% while CEOs with a PhD from a highly ranked university increase firm performance by 4.65%. Our results are robust to endogenous CEO selection, transition firms, alternative rankings, unobserved firm characteristics and the network of the CEO. We also show that the increase in firm performance is due to a tighter control of costs and superior cash flow management.

Iaith wreiddiol	Saesneg
Cyfnodolyn	European Financial Management
Dynodwyr Gwrthrych Digidol (DOIs)	https://doi.org/10.1111/eufm.12316
Statws	Cyhoeddwyd - 2022
Cyhoeddwyd yn allanol	Ie

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10.1111/eufm.12316Trwydded: CC BY

Euro Fin Management - 2021 - Urquhart - PhD CEOs and firm performanceFersiwn derfynol wedi’i chyhoeddi, 2.17 MBTrwydded: CC BY

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title = "PhD CEOs and firm performance",

abstract = "This paper investigates the relationship between the education of a Chief Executive Officer (CEO) and firm performance and provides robust evidence that firms led by CEOs with PhDs outperform their peers. We find that CEOs with PhDs increase firm performance by 3.03\% while CEOs with a PhD from a highly ranked university increase firm performance by 4.65\%. Our results are robust to endogenous CEO selection, transition firms, alternative rankings, unobserved firm characteristics and the network of the CEO. We also show that the increase in firm performance is due to a tighter control of costs and superior cash flow management.",

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AB - This paper investigates the relationship between the education of a Chief Executive Officer (CEO) and firm performance and provides robust evidence that firms led by CEOs with PhDs outperform their peers. We find that CEOs with PhDs increase firm performance by 3.03% while CEOs with a PhD from a highly ranked university increase firm performance by 4.65%. Our results are robust to endogenous CEO selection, transition firms, alternative rankings, unobserved firm characteristics and the network of the CEO. We also show that the increase in firm performance is due to a tighter control of costs and superior cash flow management.

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PhD CEOs and firm performance

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