Abstract
We estimate the effect of expatriate CEOs on firm performance using Hungarian administrative data. Comparing firms with expatriate and local CEOs following a foreign acquisition, we find that expatriates increase TFP by 8.5% and sales by 118%. Interpreting these effects through the lens of an industry equilibrium model reveals that 87% of revenue gains stem from TFP improvements, with capital deepening and export market access contributing 10% and 3%. The decomposition is similar across sectors, except export gains are absent in nontradable sectors. Our results suggest that expatriates create value primarily through superior general management skills.
Please cite as
Koren, Miklós and Álmos Telegdy. 2025. "Expatriate CEOs and Firm Performance: The Role of General Skills, Investment and Exporting Ability"
