Publications
Publications
- 2025
CEO-Firm Matches and Productivity in 42 Countries
By: Amanda Dahlstrand, David Laszlo, Helena Schweiger, Oriana Bandiera, Andrea Prat and Raffaella Sadun
Abstract
Firms are key to economic development, and CEOs are key to firm productivity. Are firms in countries at varying stages of development led by the right CEOs, and if not, why? We develop a parsimonious measure of CEO time use that allows us to differentiate CEOs into “leaders” and “managers” in a survey of 4,800 manufacturing
firms across 42 countries, with income per capita ranging from USD 4,000 to 45,000. We find that poorer countries have fewer leaders and relate this to training opportunities. Even when suitable leaders are available, they often do not lead the firms that would benefit the most, resulting in mismatches that can cause up to a 20% loss in productivity for the mismatched firms. The findings imply that policies that address the causes of mismatch could significantly enhance growth without additional resources. JEL codes: J24, M12, O47
Citation
Dahlstrand, Amanda, David Laszlo, Helena Schweiger, Oriana Bandiera, Andrea Prat, and Raffaella Sadun. "CEO-Firm Matches and Productivity in 42 Countries." NBER Working Paper Series, No. 33324, January 2025.