CEO succession planning and market reactions to CEO turnover announcements

被引：1
|
作者：
Bae, Jihun [1 ]
Joo, Jeong Hwan [2 ]
Yu, Jaeyoon [3 ]
机构：
[1] Erasmus Univ, Erasmus Sch Econ, Rotterdam, Netherlands
[2] Ulsan Natl Inst Sci & Technol, Sch Business Adm, Ulsan, South Korea
[3] Cent Michigan Univ, Coll Business Adm, Mt Pleasant, MI USA
来源：
FINANCE RESEARCH LETTERS | 2023年 / 58卷
关键词：
CEO turnover; CEO succession planning disclosure; Stock market reactions; Corporate governance;
D O I：
10.1016/j.frl.2023.103946
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study investigates how capital market investors assess CEO succession planning in the context of CEO turnover events. Conducting empirical tests using a manually collected sample of 676 CEO turnover cases, we find that CEO succession planning mitigates the negative association between CEO performance and market reactions to CEO turnover announcements. Further analyses reveal that our results are driven by firms with strong corporate governance. Overall, our findings suggest that CEO succession planning disclosure reduces investors' concerns about firm performance in the event of CEO turnover.
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页数：9
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