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

Pernille Gjerløv-Juel, Michael S. Dahl

Research output: Contribution to conference without publisher/journalPaper without publisher/journalResearchpeer-review

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.
Original languageDanish
Publication date2011
Number of pages36
Publication statusPublished - 2011
EventAcademý of Management 71st annual meeting - San Anotonio, Texas, United States
Duration: 12 Aug 201116 Aug 2011

Conference

ConferenceAcademý of Management 71st annual meeting
CountryUnited States
CitySan Anotonio, Texas
Period12/08/201116/08/2011

Cite this

Gjerløv-Juel, P., & Dahl, M. S. (2011). The Effect of Executive Migration and Spin-offs on Incumbent Firms. Paper presented at Academý of Management 71st annual meeting, San Anotonio, Texas, United States.
Gjerløv-Juel, Pernille ; Dahl, Michael S. / The Effect of Executive Migration and Spin-offs on Incumbent Firms. Paper presented at Academý of Management 71st annual meeting, San Anotonio, Texas, United States.36 p.
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Gjerløv-Juel, P & Dahl, MS 2011, 'The Effect of Executive Migration and Spin-offs on Incumbent Firms' Paper presented at, San Anotonio, Texas, United States, 12/08/2011 - 16/08/2011, .

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

2011. Paper presented at Academý of Management 71st annual meeting, San Anotonio, Texas, United States.

Research output: Contribution to conference without publisher/journalPaper without publisher/journalResearchpeer-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

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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 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. Paper presented at Academý of Management 71st annual meeting, San Anotonio, Texas, United States.