CEO divorce and firm performance - The role of CEO's family situation

Mateja Andric, Miriam Bird, Karin Hellerstedt, Thomas M. Zellweger

Research output: Contribution to journalConference articlepeer-review

2 Scopus citations

Abstract

We investigate the impact of CEO divorce on firm performance and examine how this relationship depends on the CEO's life stage and the involvement of the CEO's family in the firm. Using data from Statistics Sweden, we tested our hypotheses using a difference-indifference design on a matched sample of mostly small and medium-sized firms, finding that CEO divorce negatively affects firm performance, and that this relationship depends on the length of the marriage, as well as on whether the CEO's spouse and children work in the firm.

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