How Succession-Induced Gaps in CEO Characteristics Affect Firm Performance

Growing evidence that the personal characteristics of CEOs affect firm policy choices and performance prompts us to investigate the implications of CEO turnover for the value of a company. In a recent paper, we examine whether CEO succession gaps (i.e., the difference in characteristics between predecessor and successor CEO) have any influence on firm performance.

A change at the top is often considered good for a company, but evidence suggests that under certain conditions continuity is advisable. To address this, we seek to identify the characteristics of succession events involving CEOs with radically different personal traits that could harm firm … Read more