Succession planning and firm innovation

Fuzhao Zhou

Finance Research Letters, 2023, vol. 58, issue PA

Abstract: In this study, I investigate the relationship between CEO succession planning and firm innovation. I find that having a CEO succession plan is negatively associated with innovation. Furthermore, CEO succession planning's negative effect on firm innovation is more pronounced in smaller and more profitable firms. Additionally, CEO succession planning negatively impacts company value. I contend that it is crucial for organizations to consider CEO succession planning's potential negative effects on innovation and take precautions to minimize them. These results provide valuable insights for academics, investors, managers, and regulators.

Keywords: Firm innovation; Succession planning; Firm value (search for similar items in EconPapers)
JEL-codes: D22 G30 M41 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323006864

DOI: 10.1016/j.frl.2023.104314

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