Monday, February 22, 2010

Sentence of the day

Inherited family-owned firms who appoint a family member (especially the eldest son) as chief executive officer are very badly managed on average.
That's Robin Hanson summarizing some conclusions from the paper "Why Do Management Practices Differ across Firms and Countries?" by Nicholas Bloom and John Van Reenen.

2 Comments:

Blogger Dave said...

I think any company that promotes someone to CEO base on bloodlines (only) is certainly destined for trouble.

6:21 AM  
Anonymous Anonymous said...

And obviously this carries over to our earlier discussion about promoting someone to absolute ruler of a country based on bloodline.

9:08 PM  

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