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

Timothy King; Abhishek Srivastav; Jonathan Williams

doi:10.1016/j.jcorpfin.2016.01.003

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

Timothy King^*, Abhishek Srivastav, Jonathan Williams

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

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. (C) 2016 Elsevier B.V. All rights reserved.

Original language	English
Pages (from-to)	287-308
Number of pages	22
Journal	Journal of Corporate Finance
Volume	37
Early online date	15 Jan 2016
DOIs	https://doi.org/10.1016/j.jcorpfin.2016.01.003
Publication status	Published - Apr 2016

Keywords / Materials (for Non-textual outputs)

CEO education
CEO compensation
banks
bank performance
executive compensation
risk taking
financial policies
firm performance
commercial banks
work experience
upper echelons
incentives
pay
managers

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10.1016/j.jcorpfin.2016.01.003

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title = "What's in an education? Implications of CEO education for bank performance",

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. (C) 2016 Elsevier B.V. All rights reserved.",

keywords = "CEO education, CEO compensation, banks, bank performance, executive compensation, risk taking, financial policies, firm performance, commercial banks, work experience, upper echelons, incentives, pay, managers",

author = "Timothy King and Abhishek Srivastav and Jonathan Williams",

note = "Academic employed in another HEI at date of acceptance/publication",

year = "2016",

month = apr,

doi = "10.1016/j.jcorpfin.2016.01.003",

language = "English",

volume = "37",

pages = "287--308",

journal = "Journal of Corporate Finance",

issn = "0929-1199",

publisher = "Elsevier",

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T1 - What's in an education? Implications of CEO education for bank performance

AU - King, Timothy

AU - Srivastav, Abhishek

AU - Williams, Jonathan

N1 - Academic employed in another HEI at date of acceptance/publication

PY - 2016/4

Y1 - 2016/4

N2 - 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. (C) 2016 Elsevier B.V. All rights reserved.

AB - 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. (C) 2016 Elsevier B.V. All rights reserved.

KW - CEO education

KW - CEO compensation

KW - banks

KW - bank performance

KW - executive compensation

KW - risk taking

KW - financial policies

KW - firm performance

KW - commercial banks

KW - work experience

KW - upper echelons

KW - incentives

KW - pay

KW - managers

U2 - 10.1016/j.jcorpfin.2016.01.003

DO - 10.1016/j.jcorpfin.2016.01.003

M3 - Article

SN - 0929-1199

VL - 37

SP - 287

EP - 308

JO - Journal of Corporate Finance

JF - Journal of Corporate Finance

ER -

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

Abstract

Keywords / Materials (for Non-textual outputs)

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