52 Pages Posted: 6 Dec 2013 Last revised: 6 Jul 2017
Date Written: June 14, 2017
We present evidence on the labor supply of CEOs, and on whether family and professional CEOs differ on this dimension. We do so through a new survey instrument that allows us to codify CEOs’ diaries in a detailed and comparable fashion, and to build a bottom-up measure of CEO labor supply. The comparison of 1,114 family and professional CEOs reveals that family CEOs work 9% fewer hours relative to professional CEOs. Hours worked are positively correlated with firm performance, and differences between family and non-family CEOs account for approximately 18% of the performance gap between family and non-family firms. We investigate the sources of the differences in CEO labor supply across governance types by exploiting firm and industry heterogeneity, and quasi-exogenous meteorological and sport events. The evidence suggests that family CEOs value–or can pursue–leisure activities relatively more than professional CEOs.
Suggested Citation: Suggested Citation
Bandiera, Oriana and Prat, Andrea and Lemos, Renata and Sadun, Raffaella, Managing the Family Firm: Evidence from CEOs at Work (June 14, 2017). Harvard Business School Strategy Unit Working Paper No. 14-044. Available at SSRN: https://ssrn.com/abstract=2363528 or http://dx.doi.org/10.2139/ssrn.2363528