Strategic or status quo-preserving business exit: (how) do CEO turnover and succession matter?

Carolin Decker, Rudi K. F. Bresser and Thomas Mellewigt

No 2010/25, Discussion Papers from Free University Berlin, School of Business & Economics

Abstract: Business exit has implications for a firm's corporate strategy. Two types of exit events are distinguished: those that involve strategic change and those that are status quo-preserving. This study investigates the impact of CEO turnover and succession on strategic versus status quo-preserving business exits. Based on a sample of CEO turnover and succession events and subsequent business exits of German corporations from different industries, our results suggest that neither voluntary nor involuntary CEO turnover is relevant to business exit. In contrast, outsider succession significantly affects the likelihood of strategic business exit, while a corporation's performance does not moderate this relationship.

Date: 2010
New Economics Papers: this item is included in nep-bec and nep-cse
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:fubsbe:201025

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