The Effect of Executive Migration and Spin-offs on Incumbent Firms

Pernille Gjerløv-Juel, Michael S. Dahl

Publikation: Konferencebidrag uden forlag/tidsskriftPaper uden forlag/tidsskriftForskningpeer review

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Resumé

If spin-offs are founded on intellectual capital accumulated at the parent firms, they could be potentially harmful to those firms. However, similar effects on parent firms' performance could be expected for executive migration to rivals. Exploiting a comprehensive Danish linked employer-employee database, we investigate how spin-off and executive migration to rivals affect parent firms' hazard of exit, sales growth and employment growth. We find negative performance effects from executive migration independent on where employees go to. While departures of top employees to found spin-offs have negative effects on parent firm performance, the effect
from key-employees who resign to competing incumbent firms is even greater. All effects decrease over time, but parent firms recover faster from spin-off migration. We study this using different methods, including matched models adjusting for parent firm heterogeneity.
OriginalsprogEngelsk
Publikationsdato2010
Antal sider45
StatusUdgivet - 2010
Begivenhed13th Conference of the International Schumpeter Society on Innovation, Organization, Sustainability and Crisis - Aalborg, Danmark
Varighed: 21 jun. 201024 jun. 2010

Konference

Konference13th Conference of the International Schumpeter Society on Innovation, Organization, Sustainability and Crisis
LandDanmark
ByAalborg
Periode21/06/201024/06/2010

Emneord

  • Spin-offs
  • Top employees
  • Performance
  • Executive migration

Citer dette

Gjerløv-Juel, P., & Dahl, M. S. (2010). The Effect of Executive Migration and Spin-offs on Incumbent Firms. Afhandling præsenteret på 13th Conference of the International Schumpeter Society on Innovation, Organization, Sustainability and Crisis, Aalborg, Danmark.
Gjerløv-Juel, Pernille ; Dahl, Michael S. / The Effect of Executive Migration and Spin-offs on Incumbent Firms. Afhandling præsenteret på 13th Conference of the International Schumpeter Society on Innovation, Organization, Sustainability and Crisis, Aalborg, Danmark.45 s.
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Gjerløv-Juel, P & Dahl, MS 2010, 'The Effect of Executive Migration and Spin-offs on Incumbent Firms' Paper fremlagt ved 13th Conference of the International Schumpeter Society on Innovation, Organization, Sustainability and Crisis, Aalborg, Danmark, 21/06/2010 - 24/06/2010, .

The Effect of Executive Migration and Spin-offs on Incumbent Firms. / Gjerløv-Juel, Pernille; Dahl, Michael S.

2010. Afhandling præsenteret på 13th Conference of the International Schumpeter Society on Innovation, Organization, Sustainability and Crisis, Aalborg, Danmark.

Publikation: Konferencebidrag uden forlag/tidsskriftPaper uden forlag/tidsskriftForskningpeer review

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N2 - If spin-offs are founded on intellectual capital accumulated at the parent firms, they could be potentially harmful to those firms. However, similar effects on parent firms' performance could be expected for executive migration to rivals. Exploiting a comprehensive Danish linked employer-employee database, we investigate how spin-off and executive migration to rivals affect parent firms' hazard of exit, sales growth and employment growth. We find negative performance effects from executive migration independent on where employees go to. While departures of top employees to found spin-offs have negative effects on parent firm performance, the effect from key-employees who resign to competing incumbent firms is even greater. All effects decrease over time, but parent firms recover faster from spin-off migration. We study this using different methods, including matched models adjusting for parent firm heterogeneity.

AB - If spin-offs are founded on intellectual capital accumulated at the parent firms, they could be potentially harmful to those firms. However, similar effects on parent firms' performance could be expected for executive migration to rivals. Exploiting a comprehensive Danish linked employer-employee database, we investigate how spin-off and executive migration to rivals affect parent firms' hazard of exit, sales growth and employment growth. We find negative performance effects from executive migration independent on where employees go to. While departures of top employees to found spin-offs have negative effects on parent firm performance, the effect from key-employees who resign to competing incumbent firms is even greater. All effects decrease over time, but parent firms recover faster from spin-off migration. We study this using different methods, including matched models adjusting for parent firm heterogeneity.

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Gjerløv-Juel P, Dahl MS. The Effect of Executive Migration and Spin-offs on Incumbent Firms. 2010. Afhandling præsenteret på 13th Conference of the International Schumpeter Society on Innovation, Organization, Sustainability and Crisis, Aalborg, Danmark.