Ceo change and firm performance in large corporations: Succession effects and manager effects

Randolph P. Beatty and Edward J. Zajac

Strategic Management Journal, 1987, vol. 8, issue 4, 305-317

Abstract: This paper argues that the succession/performance relationship is a function of two distinct, complementary concepts: manager effects and succession effects. Hypotheses are tested using a cross‐sectional/longitudinal research design, with a sample of 209 large corporations. The results suggest that announcements of CEO changes are typically associated with a reduction in the value of the firm, as reflected in the perceptions of the stock market, and that CEO successors tend to significantly influence the production and investment decisions of their firms. These results hold for both insider and outsider succession.

Date: 1987
References: Add references at CitEc
Citations: View citations in EconPapers (44)

Downloads: (external link)
https://doi.org/10.1002/smj.4250080402

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:bla:stratm:v:8:y:1987:i:4:p:305-317

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0143-2095

Access Statistics for this article

More articles in Strategic Management Journal from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().