Remotely Productive: The Efficacy of Remote Work for Executives

61 Pages Posted: 25 Jan 2021 Last revised: 2 Oct 2021

See all articles by Ran Duchin

Ran Duchin

Boston College - Carroll School of Management

Denis Sosyura

Arizona State University

Date Written: January 7, 2021

Abstract

We study the efficacy of remote working arrangements between CEOs and firms. Long-distance CEOs underperform according to operating performance, firm valuation, insider reviews, and announcement returns to CEO departures. These effects are stronger when the CEO lives further away and crosses multiple time zones. Using the private costs from uprooting the CEO’s spouse as an instrument for the CEO’s decision to work remotely, we verify the robustness of performance outcomes. The underperformance of long-distance CEOs is related to short-termism, loss of information, and consumption of leisure, such as recreational boats and beach homes.

JEL Classification: G30, G34, G41

Suggested Citation

Duchin, Ran and Sosyura, Denis, Remotely Productive: The Efficacy of Remote Work for Executives (January 7, 2021). Available at SSRN: https://ssrn.com/abstract=3761972 or http://dx.doi.org/10.2139/ssrn.3761972

Ran Duchin (Contact Author)

Boston College - Carroll School of Management ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

Denis Sosyura

Arizona State University ( email )

Tempe, AZ 85287-3706
United States

HOME PAGE: http://www.public.asu.edu/~dsosyura/

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