Working Paper: CEPR ID: DP17333
Authors: Mario Daniele Amore; Morten Bennedsen; Birthe Larsen
Abstract: The working environment is a key driver of firms’ success. Using unique survey and register data from Denmark, we show that firms led by neighborhood CEOs – defined by physical distance and personal values - exhibit better workplace conditions as perceived both by a regulatory authority and firms’ own employees. The effect is stronger when the CEO’s and employees’ children attend the same school, pointing to social interactions as a channel for the result. Finally, we show that CEOs who emphasize neighborhood engagement adopt a management style tilted toward employees’ welfare.
Keywords: CEOs; geographic proximity; neighborhood values; working environment; management style
JEL Codes: G34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| CEO proximity (G34) | social interactions (Z13) |
| social interactions (CEO and employees' children attending the same school) (L14) | likelihood of receiving administrative remarks for poor workplace conditions (J81) |
| CEO proximity (G34) | likelihood of receiving administrative remarks for poor workplace conditions (J81) |
| CEO proximity (G34) | workplace quality (J29) |