University of Texas at Austin

Do more connected CEOs have better company performance?

The answer is yes, and it’s more than anecdotal. Texas Enterprise shares the business and public policy knowledge created at The University of Texas at Austin and published an article recently detailing the research of assistant professor Cesare Fracassi, who studies executives’ social networks. He recently finished a nine-year study comparing the social ties between 30,860 executives at 2,059 companies to decisions those companies made, especially investment patterns. His conclusion in a nutshell:

“There is evidence that suggests that where the CEO and directors are more socially involved, the company is more profitable,” Fracassi says. “The information they receive helps the company to make the right decisions.”

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