CEO Health and Corporate Governance
58 Pages Posted:
Date Written: March 25, 2020
Boards hire and fire CEOs based on imperfect information. Using comprehensive data on 28 cohorts in Sweden, we analyze the role of a potentially important unobserved attribute—CEO health—in corporate governance. We find CEOs are significantly healthier than the population and other high-skill professionals, in particular in mental health. Health at appointment predicts turnover, suggesting boards respond to health problems and correct mismatches that occurred at the time of appointment. Health-related corporate governance appears to work imperfectly, however, as we find CEO health also associates with firm policies requiring an active CEO role.
Keywords: CEOs, Corporate Governance, Executives, Mental Health, Physical Health
JEL Classification: G34; I12; J24; J31
Suggested Citation: Suggested Citation