You are here

MARITAL STATUS OF EXECUTIVES AND COMPANY PERFORMANCE

Download pdf | Full Screen View

Date Issued:
2017
Abstract/Description:
This research paper explores differences in company performance levels, as measured by selected company fundamentals and annual return, with regard to the marital status of top executives, specifically the chief executive officer and the chief financial officer. It examines whether the differences in firm performance are determined by the marital status of the respective business executive. Groups of never married, married, and divorced executives are compared against each other to establish if and how the company performance changes between these groups. Summary statistics of the examined variables in conjunction with the results of the simple and multiple regression analyses indicate that marriage clearly has a detrimental effect on a firm's performance. By contrast, divorce is beneficial as it contributes to improved firm performance. As previous research has revealed, professional performance of top executives, particularly CEOs, as well as money managers is influenced by distractions originating in their personal life events. Because human attention is naturally limited, major life events, such as marriage or divorce, can have detrimental effects on the professional performance of a business executive, and therefore also on the firm performance. Consistent with the results of previous research, the data analysis identifies marital status of CEOs and CFOs as a significant determinant of firm performance.
Title: MARITAL STATUS OF EXECUTIVES AND COMPANY PERFORMANCE.
15 views
6 downloads
Name(s): Day, Ilona, Author
Lu, Yan, Committee Chair
University of Central Florida, Degree Grantor
Type of Resource: text
Date Issued: 2017
Publisher: University of Central Florida
Language(s): English
Abstract/Description: This research paper explores differences in company performance levels, as measured by selected company fundamentals and annual return, with regard to the marital status of top executives, specifically the chief executive officer and the chief financial officer. It examines whether the differences in firm performance are determined by the marital status of the respective business executive. Groups of never married, married, and divorced executives are compared against each other to establish if and how the company performance changes between these groups. Summary statistics of the examined variables in conjunction with the results of the simple and multiple regression analyses indicate that marriage clearly has a detrimental effect on a firm's performance. By contrast, divorce is beneficial as it contributes to improved firm performance. As previous research has revealed, professional performance of top executives, particularly CEOs, as well as money managers is influenced by distractions originating in their personal life events. Because human attention is naturally limited, major life events, such as marriage or divorce, can have detrimental effects on the professional performance of a business executive, and therefore also on the firm performance. Consistent with the results of previous research, the data analysis identifies marital status of CEOs and CFOs as a significant determinant of firm performance.
Identifier: CFH0000226 (IID), ucf:44671 (fedora)
Note(s): 2017-08-01
B.S.B.A.
College of Business Administration, Department of Finance
Bachelors
This record was generated from author submitted information.
Subject(s): Behavioral finance
limited attention
marital status
marriage
divorce
company performance
Persistent Link to This Record: http://purl.flvc.org/ucf/fd/CFH0000226
Restrictions on Access: public
Host Institution: UCF

In Collections