Filling Big Shoes: CEO and COO Succession Planning in Family Businesses

Patrizia Fanasch () and Bernd Frick ()
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Patrizia Fanasch: University of Paderborn
Bernd Frick: University of Paderborn

No 69, Working Papers Dissertations from Paderborn University, Faculty of Business Administration and Economics

Abstract: The succession of chief executive officer (CEO) and chief operating officer (COO) is inevitable in the life cycle of a company and especially in family businesses. However, the majority of family businesses fail to survive across multiple generations. Although the relevance of effective succession planning to secure a competitive advantage is undisputed, no attempts have yet been made to assess the impact of family-internal changes on firm performance in general and firm reputation in particular with respect to the positions of CEO and COO. In an attempt to close these gaps, this study uses event study methodology to analyze the impact of multiple managerial changes in a sample of 1,397 German wineries in the period 1994 to 2017. The results indicate that family-internal CEO and COO changes have a significantly positive impact on firm reputation. Relay succession turns out to be a particularly well-suited instrument to increase reputation.

Keywords: Family firms; Succession planning; Reputation; Wine industry (search for similar items in EconPapers)
JEL-codes: J24 L14 L22 L66 M12 (search for similar items in EconPapers)
Pages: 26
Date: 2021-04
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-lma and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:pdn:dispap:69

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