CEOs of high-profile (e.g. S&P 1500) corporations are sometimes tempted to shirk their duties. One quite well-tried method of shirking is to leave the office for the day and play golf instead. Thus, as an observer, if you take the position that shirking might in general hamper business performance, an extrapolated question can be asked – ‘Is golf bad for business?’ Researchers Biggerstaff, Cicero and Puckett have investigated such things, and present their findings in a forthcoming paper for the journal Management Science entitled FORE! An analysis of CEO shirking They find that :-
“CEOs that golf frequently (i.e., those in the top quartile of golf play, who play at least 22 rounds per year) are associated with firms that have lower operating performance and firm values.”
And also :
”Numerous tests accounting for the possible endogenous nature of these relations support a conclusion that CEO shirking causes lower firm performance.”
A full copy of the paper can be found here.
Optional assignment Although not investigated in the paper, some take the view that golf is actually good for business – in the sense that high-profile CEOs often encounter other high-profile CEOs at the golf course. Discuss
Note: The picture is ‘The MacDonald boys playing golf ‘ by Jeremiah Davison (1695?–1750?)