Seminar - Breaking the bonds of inheritability

Don Bergh will present a research paper titled, BREAKING THE BONDS OF INHERITABILITY: TOWARD UNDERSTANDING INTERGENERATIONAL PERFORMANCE MOBILITY

Abstract

Current research reports that offspring firms inherit their parent’s performance outcomes. This study extends that reasoning by testing when inheritance effects weaken and offspring firms experience performance mobility, defined as variation in offspring performance relative to the parent’s performance.  Results show that substantially more offspring have mobility in their performance than resemblance to the parent. This mobility is more likely when offspring leaders do not come from the parent and when the firms operate in different industries.  This paper introduces the concept of intergenerational performance mobility and indicates both when it is likely to occur as well as its direction.