CEOs Of Firms Facing Poor Financial Performance

CEOs of firms facing poor financial performance consult internal advisers who are less likely to offer fresh insight, says study co-authored at Cambridge Judge Business School.

Poor Financial Performance

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CEOs of companies facing poor financial performance are more apt to seek advice, but they show a preference for internal advisers who are less likely to offer fresh insight and more likely to confirm the CEO’s previous views. That’s the conclusion of a paper published in the Journal of Management co-authored by Professor Yasemin Kor of Cambridge Judge Business School, which is based on a review of 65 studies in high-impact academic journals or which have been heavily cited.

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The management implications of such “confirming” behavior are clear: “If CEOs have not already surrounded themselves with advisers who have a diverse set of perspectives and ideas, it may be too late to seek these in desperate times,” says the article.

For a fuller summary of the new paper: https://insight.jbs.cam.ac.uk/2020/confirming-behaviour


About Cambridge Judge Business School

Cambridge Judge Business School leverages the power of academia for real-world impact to transform individuals, organisations and society.

Since 1990, Cambridge Judge has forged a reputation as a centre of rigorous thinking and high-impact transformative education, situated within one of the world's most prestigious research universities, and in the heart of the Cambridge Cluster, the most successful technology entrepreneurship cluster in Europe. The School works with every student and partner or client organisation at a deep level, identifying important problems and questions, challenging and coaching people to find answers, and creating new knowledge.

Cambridge Judge pursues innovation through inter-disciplinary insight, entrepreneurial spirit and collaboration. Cutting edge research is rooted in real-world challenges and students and clients are encouraged to ask excellent questions to create real-world change. Undergraduate, graduate and executive programmes attract innovators, creative thinkers, thoughtful and collaborative problem-solvers, and current and future leaders, drawn from a huge diversity of backgrounds and countries.



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Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver