CEO Backgrounds and Stock Performance: Evidence from the Great Recession

53 Pages Posted: 25 Jan 2018 Last revised: 23 Feb 2018

See all articles by Jiaren Pang

Jiaren Pang

Tsinghua University - School of Economics & Management

Sheri Tice

Tulane University - A.B. Freeman School of Business

Lingling Wang

University of Connecticut - Department of Finance

Date Written: January 18, 2016

Abstract

Using the Great Recession of 2007-2009 as a quasi-natural experiment, we find that CEOs’ work experience is significantly related to firm stock performance while their endowed traits play a limited role in the recession. No CEO characteristics matter during the pre-recession period. CEOs who experienced more downturns in their incumbent firms’ industries during their careers perform better while CEOs with more diversified work experience perform worse in the recession; firm policies adopted by CEOs explain the former but not the latter finding, which appears to be more related to CEO incentives in the recession.

Keywords: CEO Characteristics, CEO Work Experience, Financial Crisis, Recession

JEL Classification: G30, J24, M10

Suggested Citation

Pang, Jiaren and Tice, Sheri and Wang, Lingling, CEO Backgrounds and Stock Performance: Evidence from the Great Recession (January 18, 2016). University of Connecticut School of Business Research Paper No. 18-06. Available at SSRN: https://ssrn.com/abstract=3104573 or http://dx.doi.org/10.2139/ssrn.3104573

Jiaren Pang (Contact Author)

Tsinghua University - School of Economics & Management ( email )

Beijing, 100084
China

Sheri Tice

Tulane University - A.B. Freeman School of Business ( email )

A.B. Freeman School of Business
7 McAlister Drive
New Orleans, LA 70118
United States
504-865-5469 (Phone)
504-865-6751 (Fax)

Lingling Wang

University of Connecticut - Department of Finance ( email )

School of Business
2100 Hillside Road
Storrs, CT 06269
United States

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