CEO and managerial capabilities effects in the ICT industry: a variance decomposition simulation

Veturi, Lorenzo (A.A. 2013/2014) CEO and managerial capabilities effects in the ICT industry: a variance decomposition simulation. Tesi di Laurea in Corporate strategies, LUISS Guido Carli, relatore Alessandro Marino, pp. 55. [Master's Degree Thesis]

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Abstract/Index

How CEOs affect strategy and performance is obviously relevant to strategic management research. In this paper the evidence on CEO effect, associated with corporate managerial actions, is analyzed in depth, within a single industry and on a time period of reasonable length. In particular, this study addresses the issue of the relative degree of variance in ROA accounted for by year, corporate, a proxy for managerial decisions and the person of the CEO herself. Most of the earlier literature focused much more on one of the two factors, separately. Here i propose a model that encompasses both CEO and corporate level decision effects, the latter representing what managers implement and, especially, how they do that. Further, rather than considering a corporate level fixed effect, i have presented a time-varying one. Several tests on this model will be carried out in detail. Contrary to previous literature, I find a negligible CEO effect, while management capabilities, as it was in earlier studies, account for a significant part of the variance explained, thus implying their prominence in profitability analysis research. I have also performed the interaction term between CEO and the managerial capability proxy variable and, interestingly, find it explaining a significant portion of variance in firm profitability. This finding would emphasize the organizational dimension of CEOs’ actions. The concept of managerial capabilities is employed here to firmly restate the heterogeneity in managerial decisions and, consequently, their relatedness to firm performance in a changing external environment.

References

Bibliografia e sitografia: pp. 52-53.

Thesis Type: Master's Degree Thesis
Institution: LUISS Guido Carli
Degree Program: Master's Degree Programs > Master's Degree Program in General Management, english language (LM-77)
Outstanding Thesis: Department of Business and Management
Chair: Corporate strategies
Thesis Supervisor: Marino, Alessandro
Thesis Co-Supervisor: De Angelis, Matteo
Academic Year: 2013/2014
Session: Autumn
Additional Information: La tesi è vincitrice del Premio "Tesi d'Eccellenza" 2013/2014.
Deposited by: Maria Teresa Nisticò
Date Deposited: 15 Apr 2015 13:07
Last Modified: 27 Apr 2017 14:34
URI: https://tesi.luiss.it/id/eprint/13863

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