Abstract

This research paper explores differences in company performance levels, as measured by selected company fundamentals and annual return, with regard to the marital status of top executives, specifically the chief executive officer and the chief financial officer. It examines whether the differences in firm performance are determined by the marital status of the respective business executive. Groups of never married, married, and divorced executives are compared against each other to establish if and how the company performance changes between these groups. Summary statistics of the examined variables in conjunction with the results of the simple and multiple regression analyses indicate that marriage clearly has a detrimental effect on a firm’s performance. By contrast, divorce is beneficial as it contributes to improved firm performance.

As previous research has revealed, professional performance of top executives, particularly CEOs, as well as money managers is influenced by distractions originating in their personal life events. Because human attention is naturally limited, major life events, such as marriage or divorce, can have detrimental effects on the professional performance of a business executive, and therefore also on the firm performance. Consistent with the results of previous research, the data analysis identifies marital status of CEOs and CFOs as a significant determinant of firm performance.

Thesis Completion

2017

Semester

Summer

Thesis Chair

Lu, Yan

Degree

Bachelor Science in Business Administration (B.S.B.A.)

College

College of Business Administration

Department

Department of Finance

Degree Program

Finance (B.S.B.A.)

Location

Orlando (Main) Campus

Language

English

Access Status

Open Access

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