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Competitors may perceive a focal firm's CEO succession as creating an exploitable opportunity as well as a future threat to preempt. Drawing from theories of executive human and social capital, we suggest that anticipation of internal disruption stemming from human and social capital changes in a CEO succession may lead to external disruption for the focal firm. In our sample of S&P 500 firms between 2010 and 2018, we find that competitors are more likely to attack the focal firm when the successor's professional experience differs drastically from that of the predecessor and less likely to do so when the successor is an insider. We also find that competitors' attacks following a succession event can be minimized by limiting changes to only one form of capital (i.e., human or social). Moreover, retaining the predecessor as board chair after the succession could be an effective human capital preservation strategy for reducing competitors' attacks when the difference in professional experience between the predecessor and successor is high. However, retaining the predecessor as board chair may not have the same effect when it comes to social capital. Our research highlights the competitive implications of CEO succession, offering new insight into disruption. [ABSTRACT FROM AUTHOR]

The dominant perspective used to understand racial bias in leader selection decisions is leader categorization theory (LCT). Received wisdom is twofold: evaluators prefer White leaders because they possess prototypical leader traits; however, during periods of decline, evaluators prefer racial minority leaders because their stereotypical traits (e.g., warmth) position them to galvanize followers. We argue that whereas LCT is useful for explaining racial bias in nonsuccession contexts, it is insufficient for explaining racial bias during succession. During succession, evaluators focus on the predecessor as the comparison point when evaluating candidates. This causes stereotypes and prototypes to fade from evaluators' minds, only to be replaced by a different racial bias—racial transference—which occurs when evaluators falsely assume that a leader candidate has the same personality traits as a racially similar predecessor, and thus will perform similarly. Consequently, evaluators select (reject) candidates who are racially similar to successful (unsuccessful) predecessors. We find support for these predictions in an archival study, a preregistered experiment, and three supplementary studies. Altogether, theory on racial transference establishes that racial bias during succession is driven by evaluators' tendency to generalize between racially similar predecessors and candidates, even if such generalizations are inconsistent with prevailing stereotypes and prototypes. [ABSTRACT FROM AUTHOR]

We provide large-scale empirical evidence of how much chief executive officers (CEOs) change corporate culture. To do this, we use employee reviews to measure corporate cultural change in S&P 1500 firms. In a variance decomposition analysis, we find a modest effect of CEOs on corporate cultural change. The effect of CEOs on cultural change is larger than industry effect but smaller than firm effect. Regression analysis in the context of CEO succession further shows consistent evidence of a modest effect of CEO succession on corporate cultural change. In addition, the relationship between CEOs and cultural change is not likely to be fully explained by time trend, reverse causality, sample selection bias, and omitted variable bias. An investigation into the contextual contingencies of the CEO-cultural change relationship suggests that succession characteristics, such as predecessor influence and turnaround situation, weaken postsuccession cultural change, but industry task environment has a weak moderation effect. Overall, our study contributes to the literature on strategic leadership and corporate culture. Funding: X. Li acknowledges financial support from the Ian Potter ('93D) PhD Award. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.17210. [ABSTRACT FROM AUTHOR]

Drawing upon extensive research in luxury, we investigate how firms manage to sustain charismatic legitimacy over a succession of charismatic heirs. We question the presumption that charismatic legitimacy is personal and transitory. Instead, we show that management can deal with the inherent human limitations of charismatic legitimacy by forming a brand dynasty. We define a brand dynasty as a brand in which a series of persons (brand heirs) embody the brand persona that is defined by reference to a brand founder. Our analysis identifies three general managerial practices that together transfer and when repeated sustain brand charismatic legitimacy. [ABSTRACT FROM AUTHOR]

How does the appointment of an outside CEO affect the hiring firm's performance? Prior research has reported that outside CEOs tend to underperform compared to inside CEOs, with high performance variance. Extending CEO-centric perspectives, we predict that experiential learning enhances post-succession performance, while negative transfer learning undermines it. We then offer a novel, stakeholder-centric theoretical perspective, conjecturing that stakeholders' negative sentiment toward the CEO appointment undermines post-succession performance. We further conjecture that outside CEOs are less effective in leveraging their executive experience and suffer more from negative transfer and negative sentiment when compared to inside CEOs, who can leverage their familiarity and social embeddedness in the firm, which explains why outside CEOs may underperform. Analyzing the appointments of CEOs in U.S. public firms, we find that counter to expectations, the length and breadth of their executive experience do not explain either post-succession performance or the performance differences between outside CEOs and inside CEOs. Rather, the misfit between CEOs' corporate backgrounds and their firms' characteristics and the negative sentiment surrounding their appointments explain performance differences and the underperformance of outside CEOs. Accordingly, our study directs attention to the important yet previously understudied reactions of stakeholders to CEO appointments. [ABSTRACT FROM AUTHOR]

Average cumulative abnormal returns around proxy statements containing "in-depth" disclosures of planning for CEO succession are significantly positive indicating that succession planning is a value-added undertaking. Exploiting a quasi-natural experiment based on a 2009 SEC ruling that induced more succession planning disclosures, we find that succession planning is not value-adding for all firms. Rather, succession planning is value-enhancing for larger, more complex, and more stable firms. Importantly, CEO succession planning appears to be value reducing for smaller, simpler, and less stable firms. [ABSTRACT FROM AUTHOR]

Purpose: This paper investigates the impact of Marta Ortega's succession on the closing prices of Inditex. The paper highlights the meticulous succession planning orchestrated by Amancio Ortega, Marta Ortega's extensive involvement in the business, and the supportive family dynamics that facilitated a smooth transition. This study challenges conventional notions about women in family successions and underscores the importance of effective planning and successor preparation in family businesses. Methodology: In this article we use daily data of closing prices of INDITEX from January 3, 2011, until November 29, 2023. The methodology used is based on the concept of fractional integration. Results: Contrary to market expectations, the results reveal a positive trend in closing prices following Marta Ortega's assumption of the non-executive chairman position. The prices showed some evidence of mean reversion and thus inefficiency, though, at the same time, a positive significant trend was observed in the price of the company since then. Research limitations: This research is not without limitations, which open the way for future research. This research is a case study. The results may be limited by our sample. Other female successions and their impact on closing prices should be investigated. This would help to increase research on the effects on the company following female succession. Another limitation of the study concerns the period investigated. It will be interesting to review the results obtained when the period elapsed since the succession is longer. Practical implications: This research helps to avoid the negative stereotypes associated with female succession in companies. Originality: This research will help to understand how generational handover occurs in family businesses when the heir is also a woman. [ABSTRACT FROM AUTHOR]

The given text explores the television series "Succession" and its portrayal of corporate decision-making, power dynamics, and organizational structures. It highlights the limitations of traditional theories and strategies in capturing the complexities of corporations. The text suggests that the show offers valuable insights into understanding contemporary corporations and their impact on society. It does not provide any specific details about the content or plot of the show. [Extracted from the article]

There are instances where CEO turnover occurs, even if the company has not made any significant strategy changes, and the new CEO possesses similar abilities as the predecessor. This paper aims to provide a rational explanation for this seemingly irrational phenomenon. One possible reason for this "aggressive" CEO turnover is the board's desire to reduce the information rents earned by the privately informed CEO. Specifically, the incumbent CEO has a temptation to "sandbag" the board about profitability prospects to secure more generous incentive pay for future implementation, and a (seemingly aggressive) replacement policy helps discourage this kind of gaming. That is, instead of "information-based entrenchment" as suggested by the literature (Laux 2008; Inderst and Mueller 2010), this paper shows a countervailing effect that the CEO's private information (combined with the later-stage moral hazard problem) may lead to her dismissal more often than the ex post efficient benchmark. JEL Classifications: D86; G34; M41. [ABSTRACT FROM AUTHOR]

We test a model of panic buying behaviour. The model includes an affective and a cognitive effect channel to explain panic buying. The model is validated based on a sample of German consumers collected during the first phase of the Covid-19 crisis. The results show that panic buying is more strongly influenced by cognitive constructs (e.g. norms) than by an affective construct (i.e. negative emotions) and its successors. [ABSTRACT FROM AUTHOR]

This study was conducted to gain first-hand insight into the attitudes, beliefs, values, and experiences of the targeted managers regarding executive leadership succession planning and its implementation in Namibia’s commercial public enterprises. The primary data collection for this study was qualitative and quantitative. The total population of the study was 63 participants, derived from 22 commercial public enterprises. The study developed a succession management framework for Namibian organizations called the Muadinohamba succession development progression framework, a tool for planning leadership succession in Namibian companies. The framework’s elements include making succession planning a key performance metric, setting a mandated retirement age, educating managers on succession practices, and providing a structured succession process. This study suggests that, in addition to researching leadership, companies within a specific cultural context should research leadership succession plans and implementation processes due to existential differences. [ABSTRACT FROM AUTHOR]

Copyright of Revista Anuario de Historia Regional y de las Fronteras is the property of Universidad Industrial de Santander and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

While firms compensate executives in many ways, severance pay is perhaps the most controversial yet least understood form of executive compensation. In this study, we outline a review and agenda for severance pay owed if an executive is dismissed without cause from their role. Following changes to the disclosure of executive compensation in 2006, researchers have taken a renewed interest in studying executive severance pay. The current literature on this topic, however, has evolved along loosely connected research streams across multiple disciplines. This lack of integration presents a challenge for management scholars seeking to advance our knowledge of this important form of compensation. To address this issue, we provide an interdisciplinary review, incorporating recent studies that have taken advantage of the increased transparency of severance pay. Our review clarifies key differences between severance and other forms of executive pay and organizes prior studies along three main areas of research to draw conclusions about the current literature on this form of compensation. We also outline an agenda for future research, drawing upon several literatures that are key to management research—agency theory, managerial power theory, upper echelons theory, stakeholder theory, impression management theory, and the executive labor market. By integrating perspectives that, while less common in related fields, are central to management research, we provide unique insights for future research. Finally, we discuss key methodological issues, including data accuracy, measurement consistency, and analytical approaches, and how these can be addressed moving forward. [ABSTRACT FROM AUTHOR]

The executive labor market (ELM) is a topic of interest that spans several academic fields. The outcomes of the ELM, including executive selection, succession, and compensation, are important considerations as they influence executive decision making and other organizational outcomes. Yet, a comprehensive framework of ELM dynamics currently does not exist. To address this shortcoming, we reviewed the existing literature using five fundamental questions: (1) What executive jobs are available? (2) Who is available to fill executive jobs, and what is valued on the ELM? (3) Who signals interest in the executive jobs? (4) Who gets offered/accepts the executive job, and what is the agreed-upon compensation? (5) How do status and social capital influence ELM outcomes? By answering these questions, our review provides a framework for integrating existing research on the ELM while suggesting avenues for future research. [ABSTRACT FROM AUTHOR]

In the age of Post COVID Resilience and Digitization, strategic issues in leadership research have gained prominence. Succession planning is one of such topics of strategic Human Resource Management (SHRM) which is considered by corporate boards as a major concern as it provides a way for business continuity. It is quite an important aspect for most of the start-up enterprises of modern times as they have to ensure its business continuity through the availability of strong leadership bench strength. Having a good successor on key management positions will ensure a family legacy for upcoming generations. Past literature offers insight that corporate firms including family and standalone groups have observed many challenges in terms of loss of leadership on key management positions due to the lack of a proper succession plan in place. In this study, it has attempted to explore various insights related to succession planning and its linkages to executive compensation in corporate firms having diversified business portfolios. Findings provide a fresh perspective on succession planning and executive compensation which is equally important for practitioners and new-age start-ups. [ABSTRACT FROM AUTHOR]

Background: Clinical trial evidence underpins evidence-based medicine and the improvement of healthcare worldwide. In Australasia, a significant proportion of clinical trials are conducted by geographically dispersed and multidisciplinary clinical researchers under the auspices of Clinical Trials Networks (CTNs). These groups play an important role in contributing to evidence-based medicine, primarily by conducting investigator-initiated clinical trials. Despite their clear benefits in terms of return on investment, CTNs suffer significant challenges. Methods: We conducted surveys and focus groups with Australian and New Zealand CTNs to identifying the activities and attributes that enable CTNs to operate successfully. Based on our findings, we then conducted further surveys of Australian and New Zealand CTNs to identify the prevalence of these success factors in existing CTNs. Results: Our focus groups identified three key themes associated with success and growth of a CTN: engaged membership, established infrastructure, and sustainability; and thirteen critical success factors: shared vision and motivation; strong leaders, governance and succession planning; an executive officer; sustainable funding for operations; effective communication; diverse representation and consumer input; transparent processes; a strong pipeline of trials; a reputable and recognised CTN brand; innovation and adaption; an effective group of network sites with a skilled workforce; embedded trials and prioritisation of research. These key themes and the relevant key areas were presented to 30 CTNs. Two factors were almost universally present in CTNs, reflecting the importance of these attributes: the presence of an executive officer, and a strong pipeline of trials. Three factors had a particularly low prevalence: sustainable funding for operations, effective communication, and embedded trials. Conclusions: By supporting both emerging and established CTNs to achieve critical success factors, we can improve the efficiency of CTNs to continue to contribute and expand their clinical trial activities. Particular focus needs to be on finding sustainable funding for CTNs, and raising awareness of the critical role undertaken by CTNs to improve healthcare and health outcomes. [ABSTRACT FROM AUTHOR]

Following management theory on organizational legitimacy, we predict that managers mimic the accounting of industry-leading companies to gain legitimacy. Such demand for legitimacy is expected to be greater for new managers because stakeholders are more uncertain about the managers' ability. Using a sample of CEO turnovers, we find that a firm increases financial statement comparability with industry leaders after the new CEO assumes office. This relation is stronger when (1) new managers lack executive experience at larger firms, are younger, or belong to an underrepresented group (i.e., are female or nonwhite); (2) networks that facilitate imitation are more intense, such as when firms and peers are located in the same metropolitan statistical area (MSA) and when they share auditors or blockholders; and (3) firms' operating environments are more volatile. These findings support the idea that CEOs' demand for legitimacy leads to more comparable accounting. Data Availability: Data are available from the public sources cited in the text. [ABSTRACT FROM AUTHOR]

Despite intense scrutiny from investors, markets, and regulators, many public companies have no formal succession plans. Anecdotal evidence links succession risk to significant value destruction, but there is limited academic research evaluating the effects of succession planning on chief executive officer (CEO) turnover outcomes. We provide evidence that succession planning reduces the cost of management transitions by improving their efficiency. Firms with succession plans experience not only lower uncertainty around turnover events but also a faster reduction in uncertainty over the incoming CEO's tenure, consistent with faster learning about CEO-firm fit. Succession planning also raises the quality of the CEO-firm match, as evidenced by longer CEO tenure, and improves the board's readiness to replace an underperforming CEO, increasing turnover performance sensitivity. This paper was accepted by Suraj Srinivasan, accounting. Supplemental Material: The data are available at https://doi.org/10.1287/mnsc.2022.4572. [ABSTRACT FROM AUTHOR]

Copyright of Annales: Histoire, Sciences Sociales is the property of Cambridge University Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Revista de Contabilidade & Controladoria is the property of Revista de Contabilidade & Controladoria RC & C and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We apply the psychosocial concept of generativity, or one's outlook toward the next generation, to the context of chief executive officer (CEO) succession. Integrating prior research on generativity and CEO succession, we identify two key orthogonal dimensions of CEO generativity: (a) the CEO's degree of commitment to developing the next generation of company leadership and (b) the CEO's degree of need to control the succession process and outcome. A given CEO's place on these two dimensions constitutes their overall "generativity mindset," which we conceptualize as a relatively stable motivational orientation that stems from the CEO's disposition and accumulated life experiences. From these dimensions, we identify four archetypes: the generative, hyper-generative, hypo-generative, and anti-generative CEO. We then specify how the alternative archetypes affect an array of CEO actions throughout the CEO's tenure, especially the CEO's approach to assessing and developing executives for advancement. These various actions lay the foundation for eventual succession outcomes, particularly the nature of the succession and the origin and preparation of the selected successor. The final part of our model inserts the board of directors as a potentially moderating influence in all the foregoing relationships. We conclude with an overview of follow-on research opportunities. [ABSTRACT FROM AUTHOR]

Corporate donations to charities affiliated with the board's independent directors (affiliated donations) are large and mostly undetected due to lack of formal disclosure. Affiliated donations may impair independent directors' monitoring incentives. CEO compensation is on average 9.4% higher at firms making affiliated donations than at other firms, and it is much higher when the compensation committee chair or a large fraction of compensation committee members are involved. We find suggestive evidence that CEOs are unlikely to be replaced for poor performance when firms donate to charities affiliated with a large fraction of the board or when they donate large amounts. [ABSTRACT FROM AUTHOR]

In this study, we examine new CEOs' social influence behaviors in leadership transition periods. Taking charge is challenging for new CEOs, particularly when (a) predecessor CEOs stay on as board chairs, or (b) the stock market reacts negatively to new CEO appointments. We propose that new CEOs' social influence behaviors may alter the adverse impacts of these factors on their early survival prospects. We examine two types of social influence behaviors displayed by new CEOs: (1) ingratiation toward predecessor CEOs and (2) self-promotion. We create proxies for such behaviors using a computer-aided content analysis of transcripts of new CEOs' conference calls with securities analysts. We find that ingratiation toward predecessors reduces the adverse impact of predecessors' remaining as board chairs while self-promotion mitigates the negative impact of negative stock market reactions. However, we also find evidence demonstrating that new CEOs' social influence behaviors can backfire. Accordingly, our study makes important contributions to both the CEO succession literature and the social influence literature. [ABSTRACT FROM AUTHOR]

During family firm succession, parent-incumbents are often caught up in a paradox of both empowering and dominating their child-successors. To understand this recurring phenomenon, we draw from socioemotional wealth literature and a philosophical account of the power-transfer paradox in ancient patriarchal monarchies to hypothesize that parent-incumbents tend to exert generational coercive control when their child-successors are seen as very unwilling and incapable or very willing and capable of taking over patriarchal family organizations. We test our hypotheses in three studies. In Study 1, we coded data from succession cases in Chinese patriarchal monarchies (403 BC to 959 AD) and found support for the predicted non-linear effects of successor-princes' willingness (63 cases) and capability (80 cases) on their father-kings' coercive control (persecuting or murdering the princes). In Study 2, based on survey data from parent–child dyads of 157 family firms in Taiwan and mainland China, again, we found U-shaped effects of child-successors' willingness and capability on parent-incumbents' coercive control (restraining successors' power). Moreover, parent-incumbents' highly narcissistic personality attenuated these U-shaped relationships because they tend to devalue their child-successors' willingness and capability. In Study 3, we conducted a survey of 103 parent–child dyads in family firms in mainland China and found a U-shaped relationship between capability and coercive control only when incumbents' roles in the family and at work were highly intertwined. [ABSTRACT FROM AUTHOR]

This study finds a positive, economically meaningful impact of generalist chief executive officers (CEOs) on shareholder value using 164 sudden deaths and 345 non-sudden exogenous turnovers. The higher a departing CEO's general ability index (GAI), independently and relative to her successor, the lower is the abnormal stock return to turnover announcements. Returns reflect post-turnover changes in operating performance. Further, CEOs' and successors' GAIs are significantly positively related, but only for non-sudden turnovers. Consistently, for sudden deaths, we find positive stock returns to appointments of generalist successors. The results provide a market-based explanation for the generalist pay premium. [ABSTRACT FROM AUTHOR]

Drawing from the organizational identification literature, we theorize that founder CEO succession decisions are dependent on the strength of these CEOs' organizational identification with their firms. Our theoretical premise is that factors that decrease founder CEOs' organizational identification—namely, prior entrepreneurial experience and the number of cofounders—will positively affect their voluntary succession. Conversely, factors that increase founder CEOs' organizational identification—specifically, the length of time that their organization was a private firm and core founder status—will negatively affect their voluntary succession. We find strong support for our arguments in the context of firms that undertook an initial public offering during the period from 2000 to 2013. Our findings enable us to illustrate that founder CEOs' succession decisions may be better understood by considering factors that might influence their psychological traits rather than focusing only on their performance and control. [ABSTRACT FROM AUTHOR]

CEO retirement represents the most common reason for executive succession in the United States and globally, with important implications for many stakeholders. Yet a comprehensive theory of late-career-stage executives—such as those approaching retirement—is absent from the management literature. Building on the literature on liminality, we develop theory centered on late-stage CEOs by conceptualizing executive retirement as a process that unfolds in three phases. In our framework we integrate upper echelons theory with regulatory focus theory to examine the relationship of promotion and prevention focus with the timing, pace, and nature of retiring executive role separation, transition, and reincorporation. We then construct four CEO ideal types—icon, custodian, balancer, and chairwarmer—which are based on configurations of the orthogonal dimensions of promotion and prevention focus, and by following each type along a unique pathway, we show how an integrated view of these dimensions leads to nuanced predictions. Finally, we highlight the dynamic nature of our model by investigating the role of two salient contextual factors—CEO age and past achievements—and show how they can alter retirement pathways. We discuss how a deeper understanding of executive retirement informs strategic leadership research. [ABSTRACT FROM AUTHOR]

Family-owned bakeshops have become part of the Filipino lifestyle among local neighborhoods. These businesses are under the micro, small, and medium enterprises (MSMEs). Using Venter, Boshoff, and Maas Successor related factors theory, the study determines the perception of family-owned bakeshops regarding succession and how Filipino values (diskarte, lakas ng loob and Family kinship) are present in the successor's skills, willingness and commitment, and relationship among selected bakeshops. The study determines the influence of the successor's traits and characteristics about the successor and the relationship among these factors. Self-made questionnaires were distributed to thirty (30) family-owned bakeshops in Manila City. The study found that the family-owned bakeshop in manila city perceived succession as an essential part of the continuity of the business, and the successor's traits and characteristics supported by Filipino values are highly influential in the succession process. Successors' skills, willingness and commitment, and relationships are significantly related and positively influence succession. Filipino values do not directly relate to succession but positively influence successor traits and characteristics. The study suggests that the current owner's family-owned bakeshop can use this study to evaluate their successor traits and characteristics supported by Filipino values to successfully transfer the management and ownership of the business from one generation to the next. Furthermore, the study proposed a succession model using Filipino values as an identifier of the successor's traits and characteristics of a Filipino family-owned bakeshop and its influence in succession. [ABSTRACT FROM AUTHOR]

The renunciation and abandonment of wealth are rarely described as Christian rites of passage. Yet, for many medieval commentators on Scripture, such as the Venerable Bede and his successors, they were necessary rites, preliminaries to entry into the kingdom of heaven and into the class of 'the perfect'. This article explores Arnold van Gennep's description of rites of passage in conjunction with the discussion of poverty in the Western exegetical tradition, centred in particular on Jesus's statements about poverty in Luke. It focuses on Bede's models of renunciation and abandonment of wealth which influenced Latin theology at least until the Reformation. The renunciation and abandonment of wealth provide an excellent test case for exploring van Gennep's ritual framework and its utility within the discipline of ecclesiastical history. [ABSTRACT FROM AUTHOR]