Abstract

http://ssrn.com/abstract=1682625
 
 

References (84)



 
 

Citations (3)



 


 



CEO Social Status and Risk-Taking


Joshua Shemesh


University of Melbourne - Department of Finance; Financial Research Network (FIRN)

April 15, 2014


Abstract:     
I examine whether changes in CEO status affect risk-related business decisions. I use prestigious awards as shocks to CEO status relative to other CEOs. Firms with award-winning CEOs decrease their idiosyncratic volatility, and their industry betas converge towards one. These firms also reduce their spending on research and development, while increasing investment in fixed assets relative to a matched sample of firms with non-winning CEOs. The evidence suggests that CEOs who reach higher status become more concerned about poor relative performance. By conforming to other firms in their industry, CEOs with the highest reputation can lock-in their relative advantage.

Number of Pages in PDF File: 60

Keywords: Managerial Risk Taking, Relative Concerns, Reputation

JEL Classification: G30, G32

working papers series


Download This Paper

Date posted: September 26, 2010 ; Last revised: June 30, 2014

Suggested Citation

Shemesh, Joshua, CEO Social Status and Risk-Taking (April 15, 2014). Available at SSRN: http://ssrn.com/abstract=1682625 or http://dx.doi.org/10.2139/ssrn.1682625

Contact Information

Joshua Shemesh (Contact Author)
University of Melbourne - Department of Finance ( email )
Faculty of Economics and Commerce
Parkville, Victoria 3010 3010
Australia
Financial Research Network (FIRN)
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia
HOME PAGE: http://www.firn.org.au

Feedback to SSRN


Paper statistics
Abstract Views: 1,114
Downloads: 265
Download Rank: 66,094
References:  84
Citations:  3

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.344 seconds