Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/221525
Title: From Rivals to Allies? CEO Connections in an Era of Common Ownership
Author: Hutschenreiter, Dennis C.
Qianshuo, Liu
Keywords: Gestió de cartera
Inversions
Cooperació empresarial
Portfolio management
Investments
Enterprise cooperation
Issue Date: 2025
Series/Report no: [WP E-Eco25/486]
Abstract: Institutional common ownership of firm pairs in the same industry increases the likelihood of a preexisting social connection among their CEOs. We establish this relationship using a quasinatural experiment that exploits institutional mergers combined with firms' hiring events and detailed information on CEO biographies. In addition, for peer firms, gaining a CEO connection from a hiring firm's CEO appointment correlates with higher returns on assets, stock market returns, and decreasing product similarity between companies. We find evidence consistent with common owners allocating CEO connections to shape managerial decisionmaking and increase portfolio firms' performance.
It is part of: UB Economics – Working Papers, 2025, E25/486
URI: https://hdl.handle.net/2445/221525
Appears in Collections:UB Economics – Working Papers [ERE]

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