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Managing the Family Firm: Evidence from CEOs at Work

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  • Oriana Bandiera
  • Renata Lemos
  • Andrea Prat
  • Raffaella Sadun

Abstract

We present evidence on the labor supply of CEOs, and on whether family and professional CEOs differ on this dimension. We do so through a new survey instrument that allows us to codify CEOs' diaries in a detailed and comparable fashion, and to build a bottom-up measure of CEO labor supply. The comparison of 1,114 family and professional CEOs reveals that family CEOs work 9% fewer hours relative to professional CEOs. Hours worked are positively correlated with firm performance, and differences between family and non-family CEOs account for approximately 18% of the performance gap between family and non-family firms. We investigate the sources of the differences in CEO labor supply across governance types by exploiting firm and industry heterogeneity, and quasi-exogenous meteorological and sport events. The evidence suggests that family CEOs value-or can pursue-leisure activities relatively more than professional CEOs.

Suggested Citation

  • Oriana Bandiera & Renata Lemos & Andrea Prat & Raffaella Sadun, 2013. "Managing the Family Firm: Evidence from CEOs at Work," CEP Discussion Papers dp1250, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1250
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    More about this item

    Keywords

    CEO; Time; Family firms; Competition; Productivity;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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