Universiti Utara Malaysia Institutional Repository (Universiti Utara Malaysia) · 2013 · 18 citations · 24 references
Open access
ManagementFinanceStrategic ManagementCorporate FinanceCorporate StrategySuccession PlanningExecutive SuccessionRetention Of SuccessorsCeo Succession PlanningCeo TurnoverFinancial Performance ManagementPaired T-testSuccession Decision MakingSuccession Planning EffectivenessSuccession ProcessWilcoxon Signed-rank Test
This study investigates the impact of CEO succession on the financial performance of publicly listed Malaysian firms.A match-paired t-test and Wilcox on signed-rank test are used to determine if there is a change in firm performance following CEO succession.The overall results show that performance improves following post-succession.We also find significant improvement in the performance of companies that experienced forced turnovers and subsequently selected outsiders as successors.On the other hand, forced CEO turnovers that are followed by internal successions disrupt firm performance.As CEO successions impact firms’ future performance, the succession planning process should be a priority for firms.
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Outside directors and CEO turnover
Michael S. Weisbach · Journal of Financial Economics · 1988 · 4.4K citations
Management, Corporate Governance, Organizational Behavior +12
Ownership structure and top executive turnover
David J. Denis, Diane K. Denis, Diane K. Denis et al. · Journal of Financial Economics · 1997 · 831 citations
Management, Corporate Governance, Organizational Behavior +11