Work detail

Quantitative Link between Founder-CEOs and Total Shareholder Return

Author: Mgr. Jakub Chyba
Year: 2022 - summer
Leaders: prof. Ing. Evžen Kočenda M.A., Ph.D., DSc.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 68
Awards and prizes:
Link: https://dspace.cuni.cz/handle/20.500.11956/173977
Abstract: In our work we aim to study the effect of Founder-CEO presence in a company on excess
shareholder returns. Hence, this work continues in the footsteps of asset pricing literature
studying statistical effects of variables such as of Beta, Size and Price to Book ratio. We
gather data on panel of NASDAQ 100 companies and note presence of firm and time effect in
our data. In this situation we use two methodologies to try to tackle the issues in our data.
Specifically, we employ Hausman Taylor approach and Fama Macbeth regression. We find
some evidence in favour of Founder-CEO effect, yet overall we arrive to inconclusive results.
Our Hausman Taylor approach arrives to positive statistically significant effect at FounderCEOs, while Fama Macbeth arrives to insignificant effect. We note that different issues with
endogeneity might be an important factor behind the difference, yet we argue that given our
options the methods employed are valid choices.
August 2022
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