Outsider vs insider: Does firm governance matter?

Yahya Uthman Abdullahi, Rokiah Ishak and Norfaiezah Sawandi

Business and Economic Horizons (BEH), 2018, vol. 14, issue 3, 689-699

Abstract: As CEO turnover occurs, the company may select an insider or outsider as a successor. This study attempts to ascertain whether firm performance, female directors, board religiosity and blockholder ownership influence the decision to appoint an internal or external candidate. Results from logistic regression analysis on 72 succession events over a five-year period (2011 to 2015) reveal that firms which are controlled by blockholders and those with females on their boards tend to select an outsider as the successor. Meanwhile, firms that have Muslims on their boards are more likely to select insiders as successors. This study implies that poor firm performance does not necessarily lead to outside CEO selection choice. On the overall, the findings indicate that blockholder ownership and gender diversity in the boardroom matter in the Nigerian corporate landscape.

Keywords: Blockholder; CEO selection; performance; gender diversity; religiosity (search for similar items in EconPapers)
JEL-codes: G34 G38 M41 M42 M48 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://academicpublishingplatforms.com/downloads/ ... sider_pp.689-699.pdf (application/pdf)
https://academicpublishingplatforms.com/article.ph ... mber=32&article=2562 (text/html)

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:pdc:jrnbeh:v:14:y:2018:i:3:p:689-699

DOI: 10.15208/beh.2018.48

Access Statistics for this article

Business and Economic Horizons (BEH) is currently edited by Orifjan Namozov, Ph.D.

More articles in Business and Economic Horizons (BEH) from Prague Development Center Contact information at EDIRC.
Bibliographic data for series maintained by Jaroslav Holecek ( this e-mail address is bad, please contact ).