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Applied Economics Letters Volume 13, 2006 - Issue 14
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Original Articles

External recruitments and firm performance

Pedro Martins School of Business and Management, Queen Mary, University of London, London, UK; 1ZA, Bonn, Germany; CEG-IST, Lisbon, Portugal
&
Francisco Lima Department of Engineering and Management and CEG-IST, Instituto Superior Tecnico, Lisbon, PortugalCorrespondence[email protected]
Pages 911-915 | Published online: 23 Nov 2006
 
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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.

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