Which CEO Characteristics and Abilities Matter?
Article first published online: 21 MAY 2012
© 2012 The American Finance Association
The Journal of Finance
Volume 67, Issue 3, pages 973–1007, June 2012
How to Cite
KAPLAN, S. N., KLEBANOV, M. M. and SORENSEN, M. (2012), Which CEO Characteristics and Abilities Matter?. The Journal of Finance, 67: 973–1007. doi: 10.1111/j.1540-6261.2012.01739.x
- Issue published online: 21 MAY 2012
- Article first published online: 21 MAY 2012
We exploit a unique data set to study individual characteristics of CEO candidates for companies involved in buyout and venture capital transactions and relate these characteristics to subsequent corporate performance. CEO candidates vary along two primary dimensions: one that captures general ability and another that contrasts communication and interpersonal skills with execution skills. We find that subsequent performance is positively related to general ability and execution skills. The findings expand our view of CEO characteristics and types relative to previous studies.