The Impact a Executive’s Relation to Their Firm Has on the Implications of Their Exogenous Death
Session Number
Project ID: BHVSO 02
Advisor(s)
Dr. Carola Frydman; Northwestern University, Kellogg School of Management
Discipline
Behavioral and Social Sciences
Start Date
19-4-2023 9:20 AM
End Date
19-4-2023 9:35 AM
Abstract
The equity price of a business determines its success, at least in the eyes of an investor. The higher the stock price, the more support the business receives from its investors; conversely, the lower the stock price, the less support the company gets from its investors. Guided by Dr. Carola Frydman at Northwestern University’s Kellogg School of Management, this paper addresses the question of whether how an executive reached their position impacts the extent to which firms are affected by deaths of executives, what features characterize an ideal director, and who the most influential directors of the 1990s were. The acts of the executives have a direct impact on the business, but so can their untimely deaths. The impact of exogenous deaths of executives on the stock market are used to assess a company's worth. The characteristic of directors being analyzed is their relation to the firm, specifically if they are the founder, family to the founder, or are non-familial. This can help companies determine whether they should be or remain as a family firm rather than expand.
The Impact a Executive’s Relation to Their Firm Has on the Implications of Their Exogenous Death
The equity price of a business determines its success, at least in the eyes of an investor. The higher the stock price, the more support the business receives from its investors; conversely, the lower the stock price, the less support the company gets from its investors. Guided by Dr. Carola Frydman at Northwestern University’s Kellogg School of Management, this paper addresses the question of whether how an executive reached their position impacts the extent to which firms are affected by deaths of executives, what features characterize an ideal director, and who the most influential directors of the 1990s were. The acts of the executives have a direct impact on the business, but so can their untimely deaths. The impact of exogenous deaths of executives on the stock market are used to assess a company's worth. The characteristic of directors being analyzed is their relation to the firm, specifically if they are the founder, family to the founder, or are non-familial. This can help companies determine whether they should be or remain as a family firm rather than expand.