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CEO Succession and New-Firm Performance: Does Successor Origin Matter?

Masatoshi Kato and Yuji Honjo
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Yuji Honjo: Faculty of Commerce, Chuo University

No 213, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This study explores the impact of chief executive officer (CEO) succession on new-firm performance, using a sample of Japanese firms founded during the period 2003–2010. When controlling for firm- and CEO-specific characteristics, we find that new firms with experience in CEO succession are more likely to increase sales than those without it. The results also reveal that CEO succession influences sales growth among new firms, but not employment growth. Moreover, based on successor origin, we classify the types of CEO succession, such as inside, outside, and family succession. The results reveal that both insider and outsider succession influences sales growth, while family succession does not.

Keywords: CEO succession; Growth; Insider succession; Outsider succession; New firm; Successor origin. (search for similar items in EconPapers)
JEL-codes: M13 L25 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2020-05
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-ent and nep-sbm
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