Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 2006 erstellt
Description:
In this study, we explore what kinds of firms are more likely to have a family CEO or professional CEO, and investigate the performance of CEOs from different backgrounds. The results show that firms with low requirements in managerial skills and a high potential for expropriation are more likely to choose a CEO from the largest shareholder's family (nepotism). As for the relationship between CEO background and firm performance, it depends on firm operating characteristics and control environment. When a firm requires high managerial skill, firm performance will be improved if the CEO is a professional manager and the largest shareholder has low cash-flow rights and weaker control. When there is large opportunity for expropriation in a firm, a firm's performance will be better if the CEO is a family member and the largest shareholder has highly persuasive cash-flow rights