Skip to main content

The Ties that Bind or Those That Tear Us Apart? Co-CEO Constellations and ESG Performance in Family Firms

Many firms listed on the Milan Stock Exchange are family firms. A significant number of them have more than one CEO. But how do these co-CEO structures impact ESG performance?

In our latest study, my co-authors Yuliya Ponomareva, Francesco Paolone, and Domenico R. Cambrea and I find that co-CEO structures generally reduce ESG performance due to family-induced cognitive diversity. However, when one of the co-CEOs also chairs the board, this negative effect is mitigated and can even turn positive.

Our research is now published online in the Journal of Business Ethics and is available free of charge from here.

Here is the link to a brief podcast summarising the study.

Comments

Popular posts from this blog

CEO Political Ideology and Payout Policy

Ever wondered how a CEO's political ideology influences their company's payout policy? In my latest study with Ali Bayat, we find that conservative CEOs are not only more likely to pay dividends, but they also pay higher dividends and often combine them with share repurchases. Interestingly, these payouts are typically funded by drawing on cash reserves and cutting back on capital and R&D spending. Our full study will be published soon in the Journal of Banking and Finance. You can read it here . A podcast summarising the study is available from here .

CEO Duality

Please follow this link for a recent article in the Lex column of the Financial Times covering my research on CEO duality. The study in question is discussed in more detail in one of my earlier blog posts .

Insider Trading in Connected Firms during Trading Bans

My latest study with Luc Renneboog and Yang Zhao looks at insider trades by directors who sit on multiple boards. When these directors face a trading ban in one of their firms due to an impending earnings announcement, we find they often trade in one of their other firms, using their private information, and they make a profit by doing so. These trades aren't illegal, but are they ethical? You can hear more about our findings in this podcast . An executive summary is available from the Harvard Law School Forum on Corporate Governance . The study itself can be downloaded from the website of the European Corporate Governance Institute (ECGI) .