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CEP discussion paper
Managing the Family Firm: Evidence from CEOs at Work
Oriana Bandiera, Renata Lemos, Andrea Prat and Raffaella Sadun
December 2013
Paper No' CEPDP1250:
Full Paper (pdf)

JEL Classification: M12; L2; D24

Tags: ceo; time; family firms; competition; productivity

We present evidence on the labor supply of CEOs, and on whether family and professional CEOs differ on this dimension. We do so through a new survey instrument that allows us to codify CEOs’ diaries in a detailed and comparable fashion, and to build a bottom-up measure of CEO labor supply. The comparison of 1,114 family and professional CEOs reveals that family CEOs work 9% fewer hours relative to professional CEOs. Hours worked are positively correlated with firm performance, and differences between family and non-family CEOs account for approximately 18% of the performance gap between family and non-family firms. We investigate the sources of the differences in CEO labor supply across governance types by exploiting firm and industry heterogeneity, and quasi-exogenous meteorological and sport events. The evidence suggests that family CEOs value–or can pursue–leisure activities relatively more than professional CEOs.

This paper has been published as:
,Managing the Family Firm: Evidence from CEOs at Work', Oriana Bandiera, Renata Lemos, Andrea Prat and Raffaella Sadun, The Review of Financial Studies, Volume 31, Issue 5, May 2018