Does CEO fitness matter?

Arbeitspapier

This study provides evidence suggesting that CEOs' physical fitness has a positive impact on firm value, consistent with the beneficial effects of fitness on, e.g., cognitive functions, stress coping and job performance. For each of the years 2001 to 2011, we define S&P 1500 CEOs as fit if they finish a marathon. CEO fitness is also associated with higher firm profitability and higher M&A announcement returns. Our identification strategy includes CEO-firm fixed effects, instrumental variables, permutation tests, random effects, and time-varying CEO, firm and industry effects. An additional analysis of sudden CEO deaths, based on a fitness measure not limited to running, confirms our results.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CFR Working Paper ; No. 14-12 [rev.3]

Classification and Topics

• Classification: Wirtschaft ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: CEO heterogeneity ; firm value ; mergers and acquisitions ; physical fitness

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Limbach, Peter ; Sonnenburg, Florian
• Event: Veröffentlichung
• (who): University of Cologne, Centre for Financial Research (CFR)
• (where): Cologne
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/123715
• Last update: 10.03.2025, 11:43 AM CET