Whom to dismiss? CEO celebrity and management dismissal

Jong-Hun Park, Changsu Kim and Yun-Dal Sung

Journal of Business Research, 2014, vol. 67, issue 11, 2346-2355

Abstract: Based on the power dynamics in strategic leadership ranks, this study examines whether chief executive officer (CEO) celebrity serves as a source of CEO power and empirically investigates its role in management dismissal. In the spirit of scapegoating theory, this study proposes that CEO celebrity weakens the likelihood of CEO dismissal but strengthens the likelihood of executive dismissal in the face of poor firm performance. This study goes further to explore the previously unexamined question of “whom to dismiss” and argues that less powerful non-board executives as opposed to board executives are more likely to be handy scapegoats of power dynamics. The data from Korean public firms in the aftermath of the Asian financial crisis largely support such a scapegoating hypothesis.

Keywords: Management dismissal; Power dynamics; Scapegoating; CEO celebrity (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:67:y:2014:i:11:p:2346-2355

DOI: 10.1016/j.jbusres.2014.01.010

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