Communication within firms: evidence from CEO turnovers

Stephen Michael Impink, Andrea Prat and Raffaella Sadun

POID Working Papers from Centre for Economic Performance, LSE

Abstract: This paper uses novel, firm-level measures derived from communications metadata before and after a CEO transition in 102 firms to study if CEO turnover impacts employees' communication flows. We find that CEO turnover leads to an initial decrease in intra-firm communication, followed by a significant increase approximately five months after the CEO change. The increase is driven primarily by vertical (i.e. manager to employee) communication. Greater increases in communication after CEO change are associated with greater increases in firm market returns.

Keywords: CEO change; communication; alignment (search for similar items in EconPapers)
Date: 2021-08-31
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https://poid.lse.ac.uk/textonly/publications/downloads/poidwp014.pdf (application/pdf)

Related works:
Journal Article: Communication Within Firms: Evidence from CEO Turnovers (2025)
Working Paper: Communication within firms: evidence from CEO turnovers (2021)
Working Paper: Communication within firms: evidence from CEO turnovers (2021)
Working Paper: Communication within Firms: Evidence from CEO Turnovers (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:poidwp:014

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