CEO experience and firm growth in small family firms
Faculty of Applied Economics
Antwerp :UA, 2004
Research paper / UA, Faculteit TEW ; 2004:26
University of Antwerp
The primary purpose of this paper is to examine the relationship between firm performance (measured as growth in value added) and the depth of the experience of the Chief Executive Officer. Based on a sample of 511 small family firms, the research results show that the relationship between firm performance and CEO experience is not as clear-cut as was previously assumed. The results suggest curvilinearity to exist. Experience is contributive to the growth in value added of a firm up to a certain level of CEO-ship and dissimilar industry tenure after which it then becomes counterproductive. In addition the results show that firms with CEOs currently holding multiple directorships are found to generate significantly higher performance levels and that growth rates appear to lessen according to the age of the CEO.