The Consequences of Forced CEO Succession for Outside Directors
Kathleen A Farrell and
David A Whidbee
The Journal of Business, 2000, vol. 73, issue 4, 597-627
Abstract:
We find an increased likelihood of outside director turnover following forced CEO succession, especially among those directors that are closely aligned with the outgoing CEO, own little equity, and make poor replacement decisions. Directors that remain on the board, however, are more likely to acquire new directorships than those that remain on the board of a matched- sample firm. Overall, the results suggest that outside directors who are not aligned with the CEO and own relatively large equity stakes are rewarded when they remove a poorly performing CEO and replace him or her with a CEO that improves firm performance. Copyright 2000 by University of Chicago Press.
Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (60)
Downloads: (external link)
http://dx.doi.org/10.1086/209656 full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
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:ucp:jnlbus:v:73:y:2000:i:4:p:597-627
Access Statistics for this article
More articles in The Journal of Business from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().