Shining Brighter Than The Stars? Corporate Evidence on Competing with Superstars
Type
conference paper
Date Issued
2013-08-29
Author(s)
Abstract
This paper investigates the effect of superstar CEOs on their competitors. Exploiting shocks to CEO status due to awards provided by major media outlets, we document a significant outperformance of competitors of superstar CEOs to a control sample of competitors of observationally equivalent CEOs who do not win an award. We observe an increase in risk-taking of superstar competitors subsequent to the award and identify an increase in innovation activity as a channel of the increased risk-taking. Our empirical identification strategy uses matching techniques to ensure that our treatment and control samples behave very similarly prior to the CEO award, alleviating endogeneity concerns and supporting a causal interpretation of our results.
Language
English
Keywords
CEO awards
competition
firm performance
innovation
HSG Classification
contribution to scientific community
Refereed
No
Book title
EFA 2013
Publisher
EFA European Finance Association
Publisher place
Brüssel, Belgium
Start page
60
Event Title
40th Annual Conference of the European Finance Association (EFA)
Event Location
Cambridge UK
Event Date
28.-31.08.2013
Subject(s)
Eprints ID
225383
File(s)![Thumbnail Image]()
Name
AmmannHorschOesch_26052014.pdf
Size
318.73 KB
Format
Adobe PDF
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