Relationship between Corporate CEO Succession Planning and Corporate Performance

Zongyi Yin, Jiamei Ye, Xiaoying Wang and Fang Su ()
Additional contact information
Zongyi Yin: Wuhan University of Technology, School of Law, Humanities, and Sociology, Wuhan, China
Jiamei Ye: Wuhan University of Technology, School of Law, Humanities, and Sociology, Wuhan, China
Xiaoying Wang: `Wuhan University of Technology, School of Safety Science and Emergency Management, Wuhan, China
Fang Su: `Wuhan University of Technology, School of Safety Science and Emergency Management, Wuhan, China

The AMFITEATRU ECONOMIC journal, 2023, vol. 25, issue 64, 885

Abstract: In an increasingly competitive market environment, as an important decision for strategic change, CEO succession is a key step to driving sustainable development. The formulation of succession plans and how to improve the effectiveness of internal promotion mechanisms have been researched topics in executive team management. To explore the relationship between corporate executive succession planning and corporate performance, using 3955 CEO succession samples from 2599 companies during 2001-2015 in China, the Probit model, and the two-stage least squares method, the relationship between corporate CEO succession planning and corporate performance under the director-cum-CEO succession model was analysed. The results reveal that the formulation or not of succession plans in firms, particularly in listed firms, directly affects firm performance. Director-CEO internal succession decisions reduce firm performance relative to other CEO succession models. Conclusions obtained from this study indicate the relationship between succession planning and organisational performance at the micro level and provide a theoretical reference to further promote research related to succession decisions in listed companies and the long-term development interests of firms.

Keywords: Succession planning; organisational performance; internal appointments; CEO succession. (search for similar items in EconPapers)
JEL-codes: M12 M19 M50 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.amfiteatrueconomic.ro/temp/Article_3240.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aes:amfeco:v:25:y:2023:i:64:p:885

Access Statistics for this article

More articles in The AMFITEATRU ECONOMIC journal from Academy of Economic Studies - Bucharest, Romania Contact information at EDIRC.
Bibliographic data for series maintained by Valentin Dumitru ().