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The role of financial performance in the recruitment of executives in the UK: A network approach

The role of financial performance in the recruitment of executives in the UK: A network approach

Arrieta-Paredes, Mary-Paz and Cronin, Bruce ORCID: 0000-0002-3776-8924 (2017) The role of financial performance in the recruitment of executives in the UK: A network approach. Managerial Research Review. (In Press)

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Abstract

Drawing from two long standing traditions in organizational studies, executive manager recruitment and shareholder value creation, we analyze managerial migrations from the perspective of investment and financing decision-making. Using samples of large companies in the UK, cohorts of executive managers observed between 2006 and 2016 are examined applying network models, by comparing residual income between originating and recruiting firms and isolating exogenous residual income growth. We find that executive experience of high performance is valued by firms recruiting across or within industries and thus supports the view that emulation of other firms practices is an important driver of executive recruitment.

Item Type: Article
Uncontrolled Keywords: executive manager recruitment, cross industry/firm migration, shareholder value, residual income, ownership concentration, managerial tenure, dyadic regression
Subjects: H Social Sciences > HG Finance
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Department of International Business & Economics
Faculty of Business > Networks and Urban Systems Centre (NUSC)
Faculty of Business > Networks and Urban Systems Centre (NUSC) > Centre for Business Network Analysis (CBNA)
Last Modified: 15 Aug 2019 09:46
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: GREAT 3
URI: http://gala.gre.ac.uk/id/eprint/23761

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