Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • 2022
  • Working Paper
  • HBS Working Paper Series

Passing the Mic: Career and Firm Outcomes of Executive Interactions

By: Wei Cai, Ethan Rouen and Yuan Zou
  • Format:Print
  • | Language:English
  • | Pages:57
ShareBar

Abstract

We exploit a unique feature of conference calls to study one type of interaction among executives—directly inviting colleagues to respond to analysts’ questions. We find that the frequency of initiating interaction is positively associated with an executive’s ability, but not associated with firm performance. When new CEOs initiate more interactions than their predecessors, interaction among the rest of the executive team also increases, suggesting a learning effect. Turning to the outcomes of this practice, we find that executives who initiate more interactions than their peers are twice as likely as the average executive to be promoted to CEO. What is more, appointing CEOs who initiate more interactions than their predecessors results in an average three-day abnormal return of 0.9% around the announcement of the appointment. Teams composed of executives who interact with each other more frequently also have greater retention. Lastly, firms in which new CEOs initiate more interactions than their predecessors experience higher growth in Tobin’s Q, a result that is concentrated among growth and R&D-intensive firms.

Keywords

Conference Calls; CEO Succession; Executive Interactions; Promotion; Interpersonal Communication; Personal Development and Career; Retention

Citation

Cai, Wei, Ethan Rouen, and Yuan Zou. "Passing the Mic: Career and Firm Outcomes of Executive Interactions." Harvard Business School Working Paper, No. 22-069, May 2022.
  • Read Now

About The Authors

Ethan C. Rouen

Accounting and Management
→More Publications

Yuan Zou

Accounting and Management
→More Publications

More from the Authors

    • December 2022
    • Faculty Research

    KKR at CHI Overhead Doors (C)

    By: Ethan Rouen and Dennis Campbell
    • December 2022
    • Faculty Research

    KKR at CHI Overhead Doors (B)

    By: Ethan Rouen and Dennis Campbell
    • December 2022
    • Faculty Research

    KKR at CHI Overhead Doors (A)

    By: Ethan Rouen and Dennis Campbell
More from the Authors
  • KKR at CHI Overhead Doors (C) By: Ethan Rouen and Dennis Campbell
  • KKR at CHI Overhead Doors (B) By: Ethan Rouen and Dennis Campbell
  • KKR at CHI Overhead Doors (A) By: Ethan Rouen and Dennis Campbell
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College