Wouter Dessein, Columbia: Organizational Capital, Managerial Heterogeneity, and Firm Dynamics.

ESOP seminar. Wouter Dessein is the Eli Ginzberg Professor of Finance and Economics at the Columbia Business School. He will present a paper entitled "Organizational Capital, Managerial Heterogeneity, and Firm Dynamics", co-authored by Andrea Prat.

Wouter Dessein

Wouter Dessein. Photo: Columbia


We develop a simple model of …firm dynamics, where …firm performance depends on a set of intangible assets that we call organizational capital. In turn, the growth of organizational capital depends on the ability and behavior of the CEO. The profit-maximizing …firm owner can hire and fi…re the CEO but she faces informational and contractual constraints. Equilibrium is characterized by the co-existence of …firms with different organizational capital, different leadership styles, and different performances. This model rationalizes stylized facts about fi…rm performance, management practices, and CEOs.

Host: Bård Harstad

Published Feb. 20, 2017 2:13 PM - Last modified Apr. 25, 2017 11:32 AM