Which CEO Characteristics and Abilities Matter?

Kaplan, Steven N.; Klebanov, Mark M.; Sorensen, Morten

doi:10.2139/ssrn.972446

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Which CEO Characteristics and Abilities Matter?

Swedish Institute for Financial Research Conference on the Economics of the Private Equity Market

AFA 2008 New Orleans Meetings Paper

49 Pages Posted: 20 Mar 2007 Last revised: 14 Dec 2010

See all articles by Steven N. Kaplan

Steven N. Kaplan

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); University of Chicago - Polsky Center for Entrepreneurship

Mark M. Klebanov

University of Chicago - Graduate School of Business (GSB)

Morten Sorensen

Dartmouth College - Tuck School of Business; National Bureau of Economic Research (NBER)

There are 2 versions of this paper

Date Written: July 1, 2008

Abstract

We exploit a unique data set to study individual characteristics of CEO candidates for companies involved in buyout and venture capital transactions and relate these characteristics to subsequent corporate performance. CEO candidates vary along two primary dimensions: one that captures general ability and another that contrasts communication and interpersonal skills with execution skills. We find that subsequent performance is positively related to general ability and execution skills. The findings expand our view of CEO characteristics and types relative to previous studies.

Keywords: CEO characteristics, private equity

Suggested Citation: Suggested Citation

Kaplan, Steven Neil and Klebanov, Mark M. and Sorensen, Morten, Which CEO Characteristics and Abilities Matter? (July 1, 2008). Swedish Institute for Financial Research Conference on the Economics of the Private Equity Market, AFA 2008 New Orleans Meetings Paper, Available at SSRN: https://ssrn.com/abstract=972446 or http://dx.doi.org/10.2139/ssrn.972446