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The Risky Business of Hiring Stars

Groysberg, Boris and Nanda, Ashish and Nohria, Nitin (2004) The Risky Business of Hiring Stars. [Industry Studies Working Paper:2004-16]



An in-depth study of 1,052 star stock analysts who worked for 78 investment banks in the United States from 1988 to 1996 finds that when a company hires a star, the star’s performance plunges, there is a sharp decline in the functioning of the group or team she works with, and the company’s market value falls. Moreover, stars don’t stay with the organizations for long. For all those reasons, we conclude that companies cannot gain a competitive advantage by hiring stars from outside the business. Instead, they should focus on growing talent within the organization and retain the stars they develop.

Industry Studies Series #:2004-16
Item Type:Industry Studies Working Paper
Uncontrolled Keywords:industry studies, industry studies working paper, industry studies association, industry studies research
ID Code:165
Deposited By:Mr Robin Peterson
Deposited On:25 Feb 2010 15:31
Last Modified:07 Jun 2010 10:45

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