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Expatriate Managers: Effects on Firm Performance

  • Corvinus University of Budapest

Research output: Working paper/PreprintWorking paper

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.
Original languageEnglish
PublisherSSRN
Number of pages28
DOIs
StatePublished - 25 Jun 2024

Publication series

NameCESifo Working Paper
No.11164

Keywords

  • expatriate CEO
  • foreign acquisition
  • firm performance
  • Hungary

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