CEO social status and risk-taking

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3 Citations (Scopus)


I examine whether changes in CEO status affect risk-related business decisions. I use prestigious awards as shocks to CEO status relative to other CEOs. Firms with award-winning CEOs decrease their idiosyncratic volatility, and their industry betas converge towards one. These firms also reduce their spending on research and development, while increasing investment in fixed assets relative to a matched sample of firms with non-winning CEOs. The evidence suggests that CEOs who reach higher status become more concerned about poor relative performance. By conforming to other firms in their industry, CEOs with the highest reputation can lock-in their relative advantage.

Original languageEnglish
Article number1750004
Number of pages35
JournalQuarterly Journal of Finance
Issue number2
Publication statusPublished - 1 Jun 2017
Externally publishedYes


  • CEO reputation
  • managerial risk-taking
  • relative concerns

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