Better Ways to Hire, Announce a New CEO
*Two studies by a UA business professor examine the hiring of CEOs, finding that new CEOs make better decisions when their self image is tied to the firm and that “strategic noise” can soften market response to a new hire.*
Two new papers co-authored by assistant professor of management Steven Boivie at the University of Arizona uncover novel facets of CEO and firm performance.
The first of the papers, out now in the Academy of Management Journal, finds a new remedy to the CEO agency problem. Instead of trying to design incentives and controls to keep corporate leaders acting in the best interest of the company, Boivie and his co-authors demonstrate that boards should try to hire leaders who strongly identify with the company itself. (more…)