Take Action

Home | Faculty & Research Overview | Research

Research Details

CEO Change and Firm Performance in Large Corporations: Succession Effects and Manager Effects, Strategic Management Journal

Abstract

This paper argues that the succession/performance relationship is a function of two distinct, complementary concepts: manager effects and succession effects. Hypotheses are tested using a cross-sectional/longitudinal research design, with a sample of 209 large corporations. The results suggest that announcements of CEO changes are typically associated with a reduction in the value of the firm, as reflected in the perceptions of the stock market, and that CEO successors tend to significantly influence the production and investment decisions of their firms. These results hold for both insider and outsider succession.

Type

Article

Author(s)

Randolph P Beatty, Edward Zajac

Date Published

1987

Citations

Beatty, P Randolph, and Edward Zajac. 1987. CEO Change and Firm Performance in Large Corporations: Succession Effects and Manager Effects. Strategic Management Journal. 8(4): 305-317.

KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more

Take Action