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National power distance, status incongruence, and CEO dismissal

Weiwen Li, Yuan Lu, Shige Makino and Chung-Ming Lau

Journal of World Business, 2017, vol. 52, issue 6, 809-818

Abstract: Using a large database of public companies from 22 countries, we examine the independent and interactive effects of national power distance and status incongruence on the likelihood of CEO dismissal. Status incongruence exists in a top management team when there is an inconsistency of social status and hierarchical status among top management team members. We find that whereas national power distance decreases the likelihood of CEO dismissal, status incongruence has a positive effect on CEO dismissal. Furthermore, the positive effect of status incongruence is more salient in high power distance societies.

Keywords: Status incongruence; CEO dismissal; Power distance; Comparative and international corporate governance (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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DOI: 10.1016/j.jwb.2017.08.001

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