CEO succession
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Recent papers in CEO succession
Zhang and Qu (2016) made one of the first researches about the impact that a CEO succession with gender change has on a firm, and they suggested that it is the process and not the gender per se that constitutes disruption. Based on their... more
Zhang and Qu (2016) made one of the first researches about the impact that a CEO succession with gender change has on a firm, and they suggested that it is the process and not the gender per se that constitutes disruption. Based on their findings and considering the limited analysis of the topic, this dissertation examines if CEO succession with gender change is indeed a disruptive process and how the succession context determines the disruptive or adaptive effect. As the literature reviewed is based on quantitative research, it seemed paramount to do a qualitative analysis based on case studies of large international corporations such as Apple Inc, PepsiCo, Yahoo and HewlettPackard. These four cases represent the four different types of gender succession (male-to-male, male-to-female, female-to-female, and female-to-male) and aim to explore the various factors that influenced the succession context and how gender affected the firm’s performance. The findings of this research contradict the original ones, as they suggest that females tend to behave more aggressively than males. Thus, females tend to follow a transformational leadership style which leads to a disruptive effect in the succession context.
The role of directors in CEO succession events has evolved in recent decades with the emergence of a newly created CEO labor market. In this context, directors can potentially assist companies to identify prospective CEOs in the interests... more
The role of directors in CEO succession events has evolved in recent decades with the emergence of a newly created CEO labor market. In this context, directors can potentially assist companies to identify prospective CEOs in the interests of investors or use their expanded role to serve their own and management’s interests. Engaging several theoretical frameworks including those of economic and institutional transparency, governance, asymmetric information and managerialism, we explore this issue through examining the impact of professional director/CEO relationships in 1,136 outsider CEO successions over the past three decades, spanning a range of institutional environments in developed and developing markets and across a range of company accounting and market-based financial indicators. We find that these relationships can serve both investors’ and management’s interests subject to the specific approach taken to corporate governance in Anglo-American, European, and Asian national institutional environments. Effects also differ across accounting- and market-based measures of financial performance. These findings reflect a previously unexplored conditional theoretical relationship between information asymmetries that affects investors, boards and CEOs. In characterizing the conditional nature of this relationship, the paper makes a unique theoretical contribution to the CEO succession literature’s understanding of the role of information asymmetry and its effect on board/CEO ties in the CEO labor market.
This paper explores how prominent VCs affect CEO replacement in startups. Defining prominence using eigenvector centrality, we employ matching methods and instrumental variables to show that start-up CEO replacement occurs more often, and... more
This paper explores how prominent VCs affect CEO replacement in startups. Defining prominence using eigenvector centrality, we employ matching methods and instrumental variables to show that start-up CEO replacement occurs more often, and faster, when prominent VCs participate. We further explore these VCs' comparative advantage in managing CEO turnover, finding that the prominent VC effects increase as replacement costs rise, such as when incumbent CEOs are entrenched or possess specialized technology know-how, or startups are early stage. When prominent VCs participate, replacement CEOs are disproportionately experienced outsiders-external hires who possess prior startup-CEO experience. Our results reveal that CEO turnover is associated with increases in startups' ex post innovation and survival performance, with experienced outsider CEO replacements showing the strongest survival rates.
Objective – This paper investigates firm performance effected by foreign-educated or locally educated CEOs in the SET100 listed firms of Thailand. Methodology/Technique – By examining the resumes of 198 CEOs of Thailand’s 100 largest Thai... more
Objective – This paper investigates firm performance effected by foreign-educated or locally educated CEOs in the SET100 listed firms of Thailand.
Methodology/Technique – By examining the resumes of 198 CEOs of Thailand’s 100 largest Thai listed companies over the past 16 years (2000-2015), this paper compares the effects on the means and variance of the CEO succession by presenting four cases: when (1) locally-educated Thai CEO is replaced by a foreign-educated Thai CEO, (2) foreign-educated Thai CEO is replaced by a locally-educated Thai CEO, (3) locally-educated Thai CEO is replaced by another locally-educated Thai CEO, and (4) foreign-educated Thai CEO is replaced by another foreign-educated Thai CEO.
Findings – It was found that the appointment of foreign-educated CEOs in the SET100 is associated with improved firm performance with respect to the mean-variance approach if (s)he replaces a locally-educated CEO. However, firm’s performance deteriorated if a foreign-educated CEO replaces another foreign-educated CEO. Moreover, replacing a foreign-educated CEO with a locally-educated CEO also resulted in improved firm performance.
Novelty – Findings suggest that switching to foreign-educated CEOs from locally-educated CEOs, and vice-versa, can help improve firm performance, thereby indicating the merit of some kind of 'disruption' effect as relates to CEO replacement.
Methodology/Technique – By examining the resumes of 198 CEOs of Thailand’s 100 largest Thai listed companies over the past 16 years (2000-2015), this paper compares the effects on the means and variance of the CEO succession by presenting four cases: when (1) locally-educated Thai CEO is replaced by a foreign-educated Thai CEO, (2) foreign-educated Thai CEO is replaced by a locally-educated Thai CEO, (3) locally-educated Thai CEO is replaced by another locally-educated Thai CEO, and (4) foreign-educated Thai CEO is replaced by another foreign-educated Thai CEO.
Findings – It was found that the appointment of foreign-educated CEOs in the SET100 is associated with improved firm performance with respect to the mean-variance approach if (s)he replaces a locally-educated CEO. However, firm’s performance deteriorated if a foreign-educated CEO replaces another foreign-educated CEO. Moreover, replacing a foreign-educated CEO with a locally-educated CEO also resulted in improved firm performance.
Novelty – Findings suggest that switching to foreign-educated CEOs from locally-educated CEOs, and vice-versa, can help improve firm performance, thereby indicating the merit of some kind of 'disruption' effect as relates to CEO replacement.
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