Understanding The Relationship Between Founder-CEOs And Firm Performance
- Topics:
- Performance Management
- Tags:
- founder-CEO,
- Human Resources,
- Performance,
- Performance Management,
- Social Science Electronic Publishing Inc.,
- Status,
- Workforce Management
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Overview: From the executive summary: ‘Using the proportion of the firm's founders that are dead and the number of people who founded the company as instruments for founder-CEO status, one finds strong evidence that founder-CEO status is endogenous in performance regressions. This shows that the direct effect of founder-CEOs on firm performance cannot be estimated correctly without accounting for the endogeneity of founder-CEO status. After factoring out the effect of performance on founder-CEO status, finds a residual positive correlation between founder-CEO status and firm performance.’ This paper discusses the use of instrumental variable method to better understand the relationship between founder-CEOs and performance.
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Format: PDF | Size: 344KB | Date: Nov 2003 | Pages: 24




