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

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 is not significantly different from top employees who resign to competing incumbent firms. 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.
OriginalsprogDansk
Publikationsdato2011
Antal sider36
StatusUdgivet - 2011
BegivenhedAcademý of Management 71st annual meeting - San Anotonio, Texas, USA
Varighed: 12 aug. 201116 aug. 2011

Konference

KonferenceAcademý of Management 71st annual meeting
LandUSA
BySan Anotonio, Texas
Periode12/08/201116/08/2011

Citer dette

Gjerløv-Juel, P., & Dahl, M. S. (2011). The Effect of Executive Migration and Spin-offs on Incumbent Firms. Afhandling præsenteret på Academý of Management 71st annual meeting, San Anotonio, Texas, USA.
Gjerløv-Juel, Pernille ; Dahl, Michael S. / The Effect of Executive Migration and Spin-offs on Incumbent Firms. Afhandling præsenteret på Academý of Management 71st annual meeting, San Anotonio, Texas, USA.36 s.
@conference{9fda7215d821420ea1a6a23508cc150c,
title = "The Effect of Executive Migration and Spin-offs on Incumbent Firms",
abstract = "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 is not significantly different from top employees who resign to competing incumbent firms. 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.",
author = "Pernille Gjerl{\o}v-Juel and Dahl, {Michael S.}",
year = "2011",
language = "Dansk",
note = "Academ{\'y} of Management 71st annual meeting, AOM ; Conference date: 12-08-2011 Through 16-08-2011",

}

Gjerløv-Juel, P & Dahl, MS 2011, 'The Effect of Executive Migration and Spin-offs on Incumbent Firms' Paper fremlagt ved Academý of Management 71st annual meeting, San Anotonio, Texas, USA, 12/08/2011 - 16/08/2011, .

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

2011. Afhandling præsenteret på Academý of Management 71st annual meeting, San Anotonio, Texas, USA.

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

TY - CONF

T1 - The Effect of Executive Migration and Spin-offs on Incumbent Firms

AU - Gjerløv-Juel, Pernille

AU - Dahl, Michael S.

PY - 2011

Y1 - 2011

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 is not significantly different from top employees who resign to competing incumbent firms. 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 is not significantly different from top employees who resign to competing incumbent firms. 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.

M3 - Paper uden forlag/tidsskrift

ER -

Gjerløv-Juel P, Dahl MS. The Effect of Executive Migration and Spin-offs on Incumbent Firms. 2011. Afhandling præsenteret på Academý of Management 71st annual meeting, San Anotonio, Texas, USA.