External recruitments and firm performance

Abstract

In the context of tournament theory, and drawing on a panel data set of several firms and their employees, evidence is presented of a negative relationship between the share of external recruitments for top management positions and firm productivity.

Notes

¹ These IV results and the complete set of results for the other specifications are available upon request. All results are also robust to regressions using weights proportional to firm size and the inclusion of different combinations of the control variables in X.