Social connections, CEO turnover and corporate policy change

IF 2 4区管理学 Q3 BUSINESS

Australian Journal of Management Pub Date : 2022-10-18 DOI:10.1177/03128962221126555

Prabashi Dharmasiri

引用次数: 0

Abstract

We examine how social connections between successive CEOs influence policy changes enacted by incoming CEOs. Using forced turnovers, we document fewer policy changes when incoming CEOs are connected to outgoing CEOs. Our results remain consistent when exposed to tests assessing endogeneity concerns such as omitted variables, selection biases and homophily concerns. We find that the reduction in policy changes is more prominent when social ties are stronger due to greater association between the individuals. Analyses further reveal that such limited policy changes enacted by connected incoming CEOs could deteriorate firm performance, highlighting the potential importance of the findings in the CEO selection process. JEL Classification: D91, J63, M12

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社会关系、CEO离职与公司政策变化

我们研究了历任首席执行官之间的社会关系如何影响新任首席执行官制定的政策变化。通过强制离职，当新任首席执行官与离任首席执行官联系在一起时，我们记录的政策变化更少。当暴露于评估内生性问题（如遗漏变量、选择偏差和同质性问题）的测试时，我们的结果保持一致。我们发现，当个人之间的联系更紧密，社会联系更紧密时，政策变化的减少更为突出。分析进一步表明，有关联的新任首席执行官制定的这种有限的政策变化可能会恶化公司业绩，突显出这些发现在首席执行官选拔过程中的潜在重要性。JEL分类：D91、J63、M12

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Australian Journal of Management Multiple-

CiteScore

10.60

自引率

4.20%

发文量

期刊介绍： The objectives of the Australian Journal of Management are to encourage and publish research in the field of management. The terms management and research are both broadly defined. The former includes the management of firms, groups, industries, regulatory bodies, government, and other institutions. The latter encompasses both discipline- and problem-based research. Consistent with the policy, the Australian Journal of Management publishes research in accounting, applied economics, finance, industrial relations, political science, psychology, statistics, and other disciplines, provided the application is to management, as well as research in areas such as marketing, corporate strategy, operations management, organisation development, decision analysis, and other problem-focuses paradigms.