Easy cleanups or forbearing improvements: The effect of CEO tenure on successor?s performance

被引：4
|
作者：
Colak, Gonul [1 ,2 ]
Liljeblom, Eva [2 ,3 ]
机构：
[1] Univ Sussex, Brighton, East Sussex, England
[2] Hanken Sch Econ, Helsinki, Finland
[3] Lund Univ, Lund, Sweden
来源：
JOURNAL OF FINANCIAL STABILITY | 2022年 / 63卷
关键词：
CEO tenure; CEO term limits; Restructuring costs; Shareholder value; Firm performance; Hazard model; RESTRUCTURING CHARGES; INDIVIDUAL-DIFFERENCES; CORPORATE GOVERNANCE; MANAGEMENT TURNOVER; EXECUTIVE TURNOVER; FOUNDER-CEOS; AGE; OWNERSHIP; MARKET; ENTRENCHMENT;
D O I：
10.1016/j.jfs.2022.101072
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Long CEO tenure can harm firm performance even after the CEO is replaced. We analyze this issue by condi-tioning post-turnover firm performance on the length of the preceding CEO's tenure. Identification comes from instrumenting sudden CEO deaths as an exogenous shock to tenure length. We find that when a successor takes over after a long-tenured CEO, operating performance and stock returns are significantly lower, restructuring costs are higher, "big baths" are larger, and firm recovery is slower. Weaker corporate governance and a long -tenured CEO with lower skills amplify these post-turnover effects.
引用
收藏
页数：20
相关论文
共 12 条
  • [1] Tenure, firm's performance, and CEO's compensation
    Nourayi, Mahmoud
    Mintz, Steven
    [J]. MANAGERIAL FINANCE, 2008, 34 (08) : 524 - +
  • [2] Revisiting the performance consequences of CEO succession: The impacts of successor type, postsuccession senior executive turnover, and departing CEO tenure
    Shen, W
    Cannella, AA
    [J]. ACADEMY OF MANAGEMENT JOURNAL, 2002, 45 (04): : 717 - 733
  • [3] Does Green Innovation Improve Firm Performance? Testing the Moderating Effect of CEO Tenure
    Lestari, Kurnia Cahya
    Soewarno, Noorlailie
    [J]. CONTEMPORARY ECONOMICS, 2024, 18 (02) : 192 - 209
  • [4] The impact of CEO tenure on corporate social and environmental performance: an emerging country’s analysis
    Talat Mehmood Khan
    Bai Gang
    Zeeshan Fareed
    Rizwana Yasmeen
    [J]. Environmental Science and Pollution Research, 2020, 27 : 19314 - 19326
  • [5] The impact of CEO tenure on corporate social and environmental performance: an emerging country's analysis
    Khan, Talat Mehmood
    Gang, Bai
    Fareed, Zeeshan
    Yasmeen, Rizwana
    [J]. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH, 2020, 27 (16) : 19314 - 19326
  • [6] THE IMPACT OF CEO SUCCESSION WITH GENDER CHANGE ON FIRM PERFORMANCE AND SUCCESSOR EARLY DEPARTURE: EVIDENCE FROM CHINA'S PUBLICLY LISTED COMPANIES IN 1997-2010
    Zhang, Yan
    Qu, Hongyan
    [J]. ACADEMY OF MANAGEMENT JOURNAL, 2016, 59 (05): : 1845 - 1868
  • [7] Presuccession Performance, CEO Succession, Top Management Team, and Change in a Firm's Internationalization: The Moderating Effect of CEO/Chairperson Dissimilarity
    Liu, Yunshi
    Yu, Hui-Yun
    Valenti, M. Alix
    [J]. CANADIAN JOURNAL OF ADMINISTRATIVE SCIENCES-REVUE CANADIENNE DES SCIENCES DE L ADMINISTRATION, 2012, 29 (01): : 67 - 78
  • [8] The effect of CEO reputation and explanations for poor performance on investors' judgments about the company's future performance and management
    Cianci, Anna M.
    Kaplan, Steven E.
    [J]. ACCOUNTING ORGANIZATIONS AND SOCIETY, 2010, 35 (04) : 478 - 495
  • [9] Relationship between User Innovation Activities and Market Performance: Moderated Mediating Effect of Absorptive Capacity and CEO's Shareholding on Innovation Performance
    Lee, Eun Hwa
    Kim, Choo Yeon
    Yoo, Jae Wook
    [J]. SUSTAINABILITY, 2020, 12 (24) : 1 - 19
  • [10] Effect of CeO2-x-CNT/S cathode on the electrochemical performance of lithium-sulfur batteries
    Xing, Yali
    Zhang, Mingang
    Guo, Jin
    Fang, Xueyang
    Cui, Hugang
    Hu, Xiaoqin
    Cao, Xiangyu
    [J]. JOURNAL OF SOLID STATE CHEMISTRY, 2022, 316
12