Does a CEO's cultural heritage affect performance under competitive pressure?

Nguyen, Duc Duy, Hagendorff, Jens ORCID: https://orcid.org/0000-0002-3567-7826 and Eshraghi, Arman ORCID: https://orcid.org/0000-0002-7406-1725 2018. Does a CEO's cultural heritage affect performance under competitive pressure? Review of Financial Studies 31 (1) , pp. 97-141. 10.1093/rfs/hhx046

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Abstract

We exploit variation in the cultural heritage across U.S. CEOs who are the children or grandchildren of immigrants to demonstrate that the cultural origins of CEOs matter for corporate outcomes. Following shocks to industry competition, firms led by CEOs who are second- or third-generation immigrants are associated with a 6.2% higher profitability compared with the average firm. This effect weakens over successive immigrant generations and cannot be detected for top executives apart from the CEO. Additional analysis attributes this effect to various cultural values that prevail in a CEO’s ancestral country of origin.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Uncontrolled Keywords:	CEOs, Cultural values, Competition, Performance, Corporate investments
Publisher:	Oxford University Press (OUP)
ISSN:	0893-9454
Date of First Compliant Deposit:	20 February 2017
Date of Acceptance:	18 January 2017
Last Modified:	06 Nov 2023 18:12
URI:	https://orca.cardiff.ac.uk/id/eprint/101439

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