Communication within firms: evidence from CEO turnovers

Stephen Michael Impink, Andrea Prat and Raffaella Sadun

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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)
JEL-codes: J01 J50 R14 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2021-09-08
New Economics Papers: this item is included in nep-bec and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://eprints.lse.ac.uk/113873/ Open access version. (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:ehl:lserod:113873

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