The aftermath of CEO succession via hierarchical jumps on firm performance and agency cost: Evidence from Chinese firms

被引：35
|
作者：
Shah, Syed Ghulam Meran [1 ]
Tang, Mingfeng [1 ]
Sarfraz, Muddassar [2 ]
Fareed, Zeeshan [3 ]
机构：
[1] Southwestern Univ Finance & Econ, Sch Business Adm, Chengdu, Sichuan, Peoples R China
[2] Hohai Univ, Sch Business, Dept Management & HR, Nanjing, Jiangsu, Peoples R China
[3] Zhongnan Univ Econ & Law, Sch Finance, Wuhan, Hubei, Peoples R China
来源：
APPLIED ECONOMICS LETTERS | 2019年 / 26卷 / 21期
关键词：
CEO succession; hierarchical jumps; firm performance; agency cost; CORPORATE GOVERNANCE;
D O I：
10.1080/13504851.2019.1593932
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
This paper analyzes the effect of CEO succession via overall hierarchical jumps on Chinese firm performance and agency cost. It categorizes hierarchical jumps into low, medium and high level. The study reveals through panel regression analysis that the CEOs appointed via medium hierarchical jumps substantially enhance firm performance. Conversely, the successors appointed through low and high hierarchical jumps have relatively no effect on firm profitability. Conclusively, this research evaluates that the aged CEOs should be preferred among the CEOs successors via high hierarchical jumps, which have mitigated the agency problem decisively.
引用
收藏
页码：1744 / 1748
页数：5
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