Strategic or Status quo-Preserving Business Exit: (How) Do CEO Turnover and Succession Matter?

Decker, Carolin; Bresser, Rudi K. F. and Mellewigt, Thomas (2010). Strategic or Status quo-Preserving Business Exit: (How) Do CEO Turnover and Succession Matter? Discussion Papers 2010/25, Freie Universitaet Berlin, School of Business and Economics.

Abstract

Business exit has implications for a firm’s corporate strategy. Two types of exit events are distinguished: those that involve strategic change and those that are status quo-preserving. This study investigates the impact of CEO turnover and succession on strategic versus status quo-preserving business exits. Based on a sample of CEO turnover and succession events and subsequent business exits of German corporations from different industries, our results suggest that neither voluntary nor involuntary CEO turnover is relevant to business exit. In contrast, outsider succession significantly affects the likelihood of strategic business exit, while a corporation’s performance does not moderate this relationship.

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About

• Item ORO ID
• 54478
• Item Type
• Other - Working Paper
• Keywords
• business exit, divestiture, CEO turnover, CEO succession, strategic change
• Academic Unit or School
• Faculty of Business and Law (FBL) > Business > Department for Public Leadership and Social Enterprise
  Faculty of Business and Law (FBL) > Business
  Faculty of Business and Law (FBL)
• Depositing User
• Carolin Decker-Lange