Working Paper No. 1326

CEO Health and Corporate Governance

Published: March 25, 2020Pages: 57Keywords: CEOs; Corporate Governance; Executives; Mental Health; Physical HealthJEL-codes: G34; I12; J24; J31

CEO Health and Corporate Governance Matti Keloharju, Samuli Knüpfer and Joacim Tåg


Boards hire and fire CEOs based on imperfect information. Using comprehensive data on 28 cohorts in Sweden, we analyze the role of a potentially important unobserved attribute—CEO health—in corporate governance. We find CEOs are significantly healthier than the population and other highskill
professionals, in particular in mental health. Health at appointment predicts turnover, suggesting boards respond to health problems and correct mismatches that occurred at the time of appointment. Health-related corporate governance appears to work imperfectly, however, as we find CEO health also associates with firm policies requiring an active CEO role.


Reference:

Keloharju, Matti, Samuli Knüpfer and Joacim Tåg (2020), "CEO Health and Corporate Governance". IFN Working Paper No. 1326. Stockholm: Research Institute of Industrial Economics.​

Joacim Tåg

Contact

Ph: +46 8 665 4524
joacim.tag@ifn.se

Matti Keloharju

Contact

Ph: +358 40 353 8043
matti.keloharju@aalto.fi

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