Discussion paper

DP17333 Neighborhood CEOs

The working environment is a key driver of firms’ success. Using unique survey and register data from Denmark, we show that firms led by neighborhood CEOs – defined by physical distance and personal values - exhibit better workplace conditions as perceived both by a regulatory authority and firms’ own employees. The effect is stronger when the CEO’s and employees’ children attend the same school, pointing to social interactions as a channel for the result. Finally, we show that CEOs who emphasize neighborhood engagement adopt a management style tilted toward employees’ welfare.


Amore, M, M Bennedsen and B Larsen (2022), ‘DP17333 Neighborhood CEOs‘, CEPR Discussion Paper No. 17333. CEPR Press, Paris & London. https://cepr.org/publications/dp17333