2006 Fiscal Year Final Research Report Summary
Toward the Identification of Excellent CEOs
| Project/Area Number |
17330087
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| Research Category |
Grant-in-Aid for Scientific Research (B)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Business administration
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| Research Institution | Kobe University |
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Principal Investigator |
MISHINA Kazuhiro Kobe University, GSBA, Professor, 経営学研究科, 教授 (40283155)
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| Project Period (FY) |
2005 – 2006
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| Keywords | CEO / Founders / Japanese Companies / Long-term Profits / Evaluation of Companies / Evaluation of Strategy |
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| Research Abstract |
This research project aims at identifying CEOs who are truly worth the adjective "legendary." Without a list of "legendary" CEOs, we are left with a question-to what end we should educate our MBA students. In the initial phase, I tried to first identify excellent companies based on the increment in the market value. However, this approach soon faced difficulties and I was forced find an alternative. The most proud output of this project is a set of three measures, with which to identify those companies that must have been run by legendary CEOs. At the heart of the three measures is the rate of setting a new profit record.
The project also culminated in a database that contains the financial performance of 1013 public companies in Japan over the period from 1960 to 1999.
By applying the three measures to this database, I have singled out 122 excellent companies at the top end of the spectrum and 202 stagnant companies at the bottom end of the spectrum.
In the next phase, I plan to apply the same three measures to the same database with a smaller time bucket so I can shift the unit of analysis from the company-level to the CEO-level. Even a stagnant company might have a period of vigorous growth led by a competent CEO, and, by the same token, even an excellent company might have a period of stagnation owing to a ill-selected CEO. To take into account this possibility, it is imperative to build upon the accomplishment thus far, and moves on to the next stage toward the identification of legendary CEOs.
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