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POID Working Paper

Communication within firms: evidence from CEO turnovers


This paper uses novel, firm-level measures derived from communications metadata before and after a CEO transition in 102 firms to study if CEO turnover impacts employees' communication flows. We find that CEO turnover leads to an initial decrease in intra-firm communication, followed by a significant increase approximately five months after the CEO change. The increase is driven primarily by vertical (i.e. manager to employee) communication. Greater increases in communication after CEO change are associated with greater increases in firm market returns.


Stephen Michael Impink, Andrea Prat and Raffaella Sadun

31 August 2021     Paper Number POIDWP014

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This POID Working Paper is published under the Programme on Innovation and Diffusion.