From Playground to Boardroom: Endowed Social Status and Managerial Performance

84 Pages Posted: 22 Sep 2017 Last revised: 6 Nov 2021

See all articles by Fangfang Du

Fangfang Du

California State University, Fullerton

Date Written: September 20, 2017

Abstract

Using U.S. Census Survey data on CEOs’ residence in their formative years, I document a negative relation between CEOs’ endowed family wealth and managerial performance. Consistent with the view that CEOs born into poor families face higher barriers of entry but may possess greater levels of ability that enable them to become CEOs, I find that CEOs born into less-privileged families outperform those from higher-wealth families. The outperformance of CEOs from less-wealthy families is not driven by risk-taking or omitted variables. Overall, my results suggest that the level of CEOs’ social endowment provides a useful signal for their managerial ability.

Keywords: family wealth, endowed social status, firm performance, managerial style, innovation

JEL Classification: G30, G32

Suggested Citation

Du, Fangfang, From Playground to Boardroom: Endowed Social Status and Managerial Performance (September 20, 2017). Available at SSRN: https://ssrn.com/abstract=3040322 or http://dx.doi.org/10.2139/ssrn.3040322

Fangfang Du (Contact Author)

California State University, Fullerton ( email )

800 N State College St
Fullerton, CA 92831
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
251
Abstract Views
1,281
rank
170,919
PlumX Metrics