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/Advisor
Lu, Yan
Degree
Bachelor Science in Business Administration (B.S.B.A.)
College
College of Business Administration
Department
Finance
Degree Program
Finance
Location
Orlando (Main) Campus
Language
English
Access Status
Open Access
Release Date
August 2017
Recommended Citation
Day, Ilona, "Marital Status of Executives and Company Performance" (2017). Honors Undergraduate Theses. 226.
https://stars.library.ucf.edu/honorstheses/226