Tuesday, November 10, 2020 - 4:10pm to 5:45pm
Location: 
Location: TBD

Law and Economics Colloquium

presents:

Peter Cziraki
University of Toronto, Department of Economics

The Market for CEO's

Tuesday, November 10, 2020
4:10pm - 5:45pm

ZOOM MEETING:
https://zoom.us/j/8370339818


Abstract: We study the market for CEOs of large publicly-traded US firms, analyze new CEOs’ prior connections to the firm, and explore how hiring choices are determined. Our results show that firms hire from a surprisingly small pool of candidates. More than 80% of new CEOs are insiders, i.e., current or former employees or board members. More than 90% of new CEOs are executives firms are already familiar with – either insiders or executives its directors have worked with. Firms raid CEOs of other firms in only 3% of cases, implying a lack of talent reallocation across firms. Pay differences appear too small to explain these hiring choices. The evidence suggests that firmspecific human capital and personal connections determine CEO hiring and rejects standard frictionless assignment models.

Peter Cziraki is an Assistant Professor at the Department of Economics at the University of Toronto. His honours and awards include: Faculty Award for Excellence in Undergraduate Teaching, 2017. Best PhD Dissertation, Tilburg University, 2013.

 

For further workshop information contact events.law@utoronto.ca