How much do CEOs really matter? Reaffirming that the CEO effect is mostly due to chance

Title: How much do CEOs really matter? Reaffirming that the CEO effect is mostly due to chance
Creator: Fitza, Markus A.
Relation: Strategic Management Journal Vol. 38, Issue 3, p. 802-811
Publisher Link: http://dx.doi.org/10.1002/smj.2597
Publisher: John Wiley & Sons
Resource Type: journal article
Date: 2016
Description: How much of the variance in firm performance can be attributed to CEOs? This question has been the focus of a long debate in management research. In a recent study, I showed that a large portion of the performance differences that are often attributed to CEOs might in fact be due to chance. In a recent article, Quigley and Graffin argue that my conclusions can be avoided if more advanced methodological approaches are applied. Here I show that this is not the case, in fact if more realistic assumptions of how chance can affect firm performance are made, the effect of CEO leadership is almost indistinguishable from the effect of chance, independent of the estimation methodology.
Subject: variance decomposition; CEO effect; chance; sources of performance heterogeneity; CEOs
Identifier: http://hdl.handle.net/1959.13/1354599
Identifier: uon:31308
Identifier: ISSN:0143-2095
Language: eng
Reviewed

		Thumbnail	File	Description	Size	Format