Technological Similarity and the Market for Managerial Talent

60 Pages Posted: 24 Jan 2020

See all articles by Frederick L. Bereskin

Frederick L. Bereskin

University of Missouri

Seong K. Byun

Virginia Commonwealth University (VCU) - Department of Finance, Insurance & Real Estate

Jong-Min Oh

SungKyunKwan University (SKKU) - SKK Business School

Date Written: December 31, 2019

Abstract

We show that the similarity of a firm’s technological expertise with other firms affects outcomes in the managerial labor market. Using each firm’s patent portfolio to estimate its technological expertise, we find that a firm’s similarity in technological expertise with other firms is strongly related to the benchmark group used for CEO compensation and to job transition patterns. Furthermore, we provide evidence that CEO compensation is increasing in the level of a firm’s overall technological similarity with other firms. Our results thus demonstrate the crucial role of technological similarity in determining the value of outside options and the boundaries of the managerial labor market.

Suggested Citation

Bereskin, Frederick L. and Byun, Seong K. and Oh, Jong-Min, Technological Similarity and the Market for Managerial Talent (December 31, 2019). Available at SSRN: https://ssrn.com/abstract=3512119 or http://dx.doi.org/10.2139/ssrn.3512119

Frederick L. Bereskin (Contact Author)

University of Missouri ( email )

Columbia, MO 65203
United States

Seong K. Byun

Virginia Commonwealth University (VCU) - Department of Finance, Insurance & Real Estate ( email )

Richmond, VA 23284
United States

Jong-Min Oh

SungKyunKwan University (SKKU) - SKK Business School ( email )

25-2, Sungkyunkwan-ro, Jongno-gu
Seoul, 03063
Korea, Republic of (South Korea)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
29
Abstract Views
151
PlumX Metrics