Revisiting the performance consequences of CEO succession: The impacts of successor type, postsuccession senior executive turnover, and departing CEO tenure

Wei Shen, Albert A. Cannella

Research output: Contribution to journalArticle

248 Citations (Scopus)

Abstract

Highlighting the importance of succession context, this study examines the performance impacts of successor type, postsuccession senior executive turnover, and departing CEO tenure. Following a power circulation theory of control, we distinguished three types of CEO successors: followers, contenders, and outsiders. Our theory and evidence from a sample of 228 CEO successions suggest that successor type interacts with postsuccession senior executive turnover to influence firm return on assets (ROA) and that there is an inverted U-shaped relationship between departing CEO tenure and postsuccession firm ROA.

Original languageEnglish (US)
Pages (from-to)717-733
Number of pages17
JournalAcademy of Management Journal
Volume45
Issue number4
StatePublished - Aug 2002
Externally publishedYes

Fingerprint

CEO succession
Executive turnover
CEO tenure
Return on assets
Outsider
Inverted-U
Follower
Chief executive officer

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Business and International Management
  • Management of Technology and Innovation
  • Strategy and Management

Cite this

@article{ec347114e7ca4738b052d087d9a380f8,
title = "Revisiting the performance consequences of CEO succession: The impacts of successor type, postsuccession senior executive turnover, and departing CEO tenure",
abstract = "Highlighting the importance of succession context, this study examines the performance impacts of successor type, postsuccession senior executive turnover, and departing CEO tenure. Following a power circulation theory of control, we distinguished three types of CEO successors: followers, contenders, and outsiders. Our theory and evidence from a sample of 228 CEO successions suggest that successor type interacts with postsuccession senior executive turnover to influence firm return on assets (ROA) and that there is an inverted U-shaped relationship between departing CEO tenure and postsuccession firm ROA.",
author = "Wei Shen and Cannella, {Albert A.}",
year = "2002",
month = "8",
language = "English (US)",
volume = "45",
pages = "717--733",
journal = "Academy of Management Journal",
issn = "0001-4273",
publisher = "Academy of Management",
number = "4",

}

TY - JOUR

T1 - Revisiting the performance consequences of CEO succession

T2 - The impacts of successor type, postsuccession senior executive turnover, and departing CEO tenure

AU - Shen, Wei

AU - Cannella, Albert A.

PY - 2002/8

Y1 - 2002/8

N2 - Highlighting the importance of succession context, this study examines the performance impacts of successor type, postsuccession senior executive turnover, and departing CEO tenure. Following a power circulation theory of control, we distinguished three types of CEO successors: followers, contenders, and outsiders. Our theory and evidence from a sample of 228 CEO successions suggest that successor type interacts with postsuccession senior executive turnover to influence firm return on assets (ROA) and that there is an inverted U-shaped relationship between departing CEO tenure and postsuccession firm ROA.

AB - Highlighting the importance of succession context, this study examines the performance impacts of successor type, postsuccession senior executive turnover, and departing CEO tenure. Following a power circulation theory of control, we distinguished three types of CEO successors: followers, contenders, and outsiders. Our theory and evidence from a sample of 228 CEO successions suggest that successor type interacts with postsuccession senior executive turnover to influence firm return on assets (ROA) and that there is an inverted U-shaped relationship between departing CEO tenure and postsuccession firm ROA.

UR - http://www.scopus.com/inward/record.url?scp=0036669887&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0036669887&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:0036669887

VL - 45

SP - 717

EP - 733

JO - Academy of Management Journal

JF - Academy of Management Journal

SN - 0001-4273

IS - 4

ER -