Article ID Journal Published Year Pages File Type
976077 Pacific-Basin Finance Journal 2013 16 Pages PDF
Abstract

We study CEO successions in China and focus on the decision to appoint outsiders as CEOs. In doing so, we also differentiate our sample into SOEs (state-owned enterprises) and non-SOEs. We find that firm-specific factors can predict external successions for SOEs, but not for non-SOEs. Further, for those SOEs that choose outsiders as CEOs for firm-specific reasons, their subsequent firm performance improves.

► Using China’s experience, we study the decision to appoint outsiders as CEOs. ► Our sample differentiates between SOEs and non-SOEs. ► Firm-specific factors predict external successions at SOEs, but at non-SOEs. ► Firm performance improves for SOEs that choose outsiders as CEOs.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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