Research concludes that companies whose CEOs have a high degree of transferable skills do better than those with moderate levels.
While there is a debate as to whether companies should hire chief executives with specific industry knowledge or all-rounders, there is little to explain why a board should jump one way or another.
Enter a finance professor in Hong Kong who thinks he has the answer. After applying some statistical analysis to companies in the US and Canada after the two neighbours entered a free trade deal, he finds companies that had CEOs with a high degree of transferable skills did better than those with moderate levels of all-rounder ability. Jacks (and Jills) of all trades won out.
Vinh Nguyen’s model involves examining CEO performance between 19
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