Technological Fit and the Market for Managerial Talent

75 Pages Posted: 24 Jan 2020 Last revised: 1 Mar 2021

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: March 1, 2021

Abstract

We show that the similarity of a firm’s technological expertise with that of other firms affects managerial labor market outcomes. Using each firm’s patent portfolio to estimate its technological expertise, we find that its similarity in technological expertise with other firms is strongly related to the benchmark group used for CEO compensation and to job transitions. Furthermore, we show that CEO compensation increases with 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 Fit and the Market for Managerial Talent (March 1, 2021). 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)

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