Which CEO Characteristics and Abilities Matter?

49 Pages Posted: 20 Mar 2007 Last revised: 13 Jan 2015

Steven N. Kaplan

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Mark M. Klebanov

University of Chicago - Graduate School of Business (GSB)

Morten Sorensen

Copenhagen Business School; Columbia Business School; Centre for Economic Policy Research (CEPR)

Multiple version iconThere 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

Kaplan, Steven N. 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

Steven Neil Kaplan (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
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773-702-4513 (Phone)
773-702-0458 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
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Mark M. Klebanov

University of Chicago - Graduate School of Business (GSB) ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Morten Sørensen

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Columbia Business School ( email )

3022 Broadway
New York, NY 10027
United States

Centre for Economic Policy Research (CEPR) ( email )

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

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