The early experiences of a manager affect his career and working style later in life. Also, the economic situation at the beginning of a manager’s career affects his career trajectory and the way he functions as a CEO. Òscar Jordà, Moritz HP Schularick and Alan M Taylor of NBER have found that managers who start work in recessions become CEOs more quickly, but end up in smaller firms and work their way up through the ranks within a given firm. These managers do not change jobs and industries frequently. They also have a more conservative style of management and tend to spend less on capital expenditures and R&D, have lower leverage, are more diversified across segments, and show more concern about cost effectiveness.
Source: Social Science Research Network
Title: NBER Working Paper No. 17621