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MEC Project Presentation - A study on the impact of new c-level positions on the firm performance

Who:    Alif Momin

Title:    A study on the impact of new c-level positions on the firm performance

Examining Committee:

Michael Bliemel - Rowe School of Business (Supervisor)
Gregory Hebb - Rowe School of Business (Co-Supervisor)
Shamsud Chowdhury - Rowe School of Business (Reader)

Abstract:

We define Corporate governance as a team of a c-level executive who handles and looks after the working of their respective division within an organization. The performance of any organization is considered to be directly correlated to the c-level executives (Hambrick & Mason, 1984). In a traditional organizational setup, the composition of the c-level team was similar in terms of position titles and number of executives irrespective of the industry. However, due to the revolution in the industry and corporate style of working, we see various new positions are being introduced in the top-management.

This research tries to identify the impact of new c-level or divisional head position on firm’s performance. We focus our study on 7 new divisions (Digital, Business Intelligence & Analytics, E-commerce, Mobile, Cloud, Innovation and Design) which were introduced during last decade. We consider firm’s Return on Assets (ROA), Return on Equity (ROE), Tobin’s Q, yearly Revenue and compare it with their PEERS (categorized and evaluated by Bloomberg Terminal) within the same industry to measure firm’s performance.

We built a performance matrix which evaluates the impact on firm’s performance by introducing new divisional head and correlate it with the market’s (PEERS) performance. Using this matrix, we were able to identify the division which had the highest positive impact on firm’s performance after the appointment of the division head. Different matrix and executive data were merged together to create a dashboard for identifying the top executives in each division and the firm which performed better by appointing the division head.

Time

Location

Room 311, Goldberg Computer Science Building