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Does a CEO's Cultural Heritage Affect Performance under Competitive Pressure?

Nguyen, D.D.; Hagendorff, J.; Eshraghi, A.

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Authors

J. Hagendorff

A. Eshraghi



Abstract

We exploit variation in the cultural heritage across U.S. CEOs who are the children or grandchildren of immigrants to demonstrate that the cultural origins of CEOs matter for corporate outcomes. Following shocks to industry competition, firms led by CEOs who are second- or third-generation immigrants are associated with a 6.2% higher profitability compared with the average firm. This effect weakens over successive immigrant generations and cannot be detected for top executives apart from the CEO. Additional analysis attributes this effect to various cultural values that prevail in a CEO’s ancestral country of origin.

Citation

Nguyen, D., Hagendorff, J., & Eshraghi, A. (2018). Does a CEO's Cultural Heritage Affect Performance under Competitive Pressure?. The Review of Financial Studies, 31(1), 97-141. https://doi.org/10.1093/rfs/hhx046

Journal Article Type Article
Online Publication Date May 19, 2017
Publication Date 2018-01
Deposit Date Sep 9, 2021
Publicly Available Date Mar 29, 2024
Journal Review of Financial Studies
Print ISSN 0893-9454
Electronic ISSN 1465-7368
Publisher Oxford University Press
Peer Reviewed Peer Reviewed
Volume 31
Issue 1
Pages 97-141
DOI https://doi.org/10.1093/rfs/hhx046
Public URL https://durham-repository.worktribe.com/output/1235034

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Copyright Statement
This is a pre-copyedited, author-produced PDF of an article accepted for publication in Review of Financial Studies  following peer review. The version of record Nguyen, D. D., Hagendorff, J. & Eshraghi, A. (2018). Does a CEO's Cultural Heritage Affect Performance under Competitive Pressure? Review of Financial Studies 31(1): 97-141. is available online at: https://doi.org/10.1093/rfs/hhx046




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