Thursday, April 12, 2012

Management knowledge: single CEO love adventure

 The new research could make people look at corporate America again head straight. Last week, the United States the National Bureau of Economic Research (National Bureau of Economic Research) released a report that work, CEO of the company by a single management risk is higher than the stock that the CEO of the company married management.

A study by the University of Pennsylvania (Wharton School, University of Pennsylvania 's Wharton School) two professors, the survey of 1500 companies and its chief executive officer of the marital status. Two, the professors found by a single CEO and married CEO management company in the company do exist differences in behavior. Single CEO management companies tend to put more money in the research and development, acquisitions and other faster expansion of the size of the business investment, but the probability of failure is also higher. The result is the volatility of the stock price more big.

Single CEO more adventurous why? To this, the study the marital Status and Risk Managers view "(Status, Marriage and Managers' Attitudes to Risk) some have been vague. Two co-author Nick lai Rosa panov and pavel haute-savoie think, it certainly and about dating. Single people willing to take more risk, improve "spouse quality". Rosa panov said: "even in CEO, relative position among in marriage seems to be important." Rosa panov says, likely choose single nature more love adventure, but he thinks that this is not the answer. He doesn't think he the statistical results of the science and technology by the impact of the company, technology companies often have more investment in research and a younger CEO. He said, all industries and regions are the same, the CEO of validation of the survey results, although different regions of the divorce laws can increase in some areas of the proposed marriage risk (if people want to protect their wealth words).

Rosa panov to Oracle (Oracle) larry ellison and Microsoft (Microsoft) Steve ballmer for example. Ellison of his career in many cases are in a single state (Rosa panov said: "he divorced marry again and get married and divorced, repeated several times."), and he had many large-scale acquisitions, character aggressive. But Mr Ballmer in his career most of the time are married state, outside criticism of him is he didn't put Microsoft large cash reserves more take a.

Overall, the survey company about 20% in by a single CEO management. Rosa panov unable to account for single women CEO and single men between CEO there. Because the number of samples CEO women not enough, lack of statistical significance.

So, this investigation significance? First of all want to ask why the two Wharton professor concerned about the date of the ceos life or the marriage life. Rosa panov says, the issues involved in the influence of the company CEO size, and it involves whether CEO pay too high for. Rosa panov says his research shows, ceos, or more specifically their private life (to) do have influence, the impact would have probably too big. The board of directors should play a role, reduce CEO because is in pursuit of a or sexy, or wisdom in the company of the spouses of the risk-taking. But obviously, the board of directors and do it.

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