What's in an education? Implications of CEO education for bank performance

Timothy King, Abhishek Srivastav and Jonathan Williams

Journal of Corporate Finance, 2016, vol. 37, issue C, 287-308

Abstract: Exploiting a unique hand-built dataset, this paper finds that CEO educational attainment, both level and quality, matters for bank performance. We offer robust evidence that banks led by CEOs with MBAs outperform their peers. Such CEOs improve performance when compensation structures are geared towards greater risk-taking incentives, and when banks follow riskier or more innovative business models. Our findings suggest that management education delivers skills enabling CEOs to manage increasingly larger and complex banking firms and achieve successful performance outcomes.

Keywords: CEO education; CEO compensation; Banks; Bank performance (search for similar items in EconPapers)
JEL-codes: G21 G34 I21 J24 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:37:y:2016:i:c:p:287-308

DOI: 10.1016/j.jcorpfin.2016.01.003

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