Abstract (may include machine translation)
Using a novel Hungarian dataset on firms and their Chief Executive Officers (CEOs), we estimate
the impact of hiring expatriate CEOs. By examining foreign acquisitions where the new owner
replaces the incumbent CEO with an expatriate or a local CEO, we address the selection into both
acquisition and CEO hiring. Firms led by expatriate CEOs show 13 percent total factor
productivity growth, 95 percent sales growth, and increase both exports and domestic sales. Hiring
expatriate CEOs enhances firm performance in both international and domestic markets. Our
findings suggest that expatriates have superior general management skills.
the impact of hiring expatriate CEOs. By examining foreign acquisitions where the new owner
replaces the incumbent CEO with an expatriate or a local CEO, we address the selection into both
acquisition and CEO hiring. Firms led by expatriate CEOs show 13 percent total factor
productivity growth, 95 percent sales growth, and increase both exports and domestic sales. Hiring
expatriate CEOs enhances firm performance in both international and domestic markets. Our
findings suggest that expatriates have superior general management skills.
| Original language | English |
|---|---|
| Publisher | SSRN |
| Number of pages | 28 |
| DOIs | |
| State | Published - 25 Jun 2024 |
Publication series
| Name | CESifo Working Paper |
|---|---|
| No. | 11164 |
Keywords
- expatriate CEO
- foreign acquisition
- firm performance
- Hungary
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