TY - JOUR
T1 - The determinants of the CEO successor choice in family firms
AU - Ansari, Iram Fatima
AU - Goergen, Marc
AU - Mira, Svetlana
N1 - Funding Information:
We would like to thank participants at a workshop at Cardiff Business School as well as participants at the 13th Workshop on Corporate Governance and Investment at Cardiff University and the 2013 ACCGBS at Assumption University of Thailand for helpful comments and suggestions. We are particularly grateful to Øyvind Bøhren, the discussant. Iram gratefully acknowledges financial support from the College of Economics and Political Science , Sultan Qaboos University, Oman . Finally, we are indebted to an anonymous referee, Luc Renneboog and Stuart Gillan, the Editor.
Publisher Copyright:
© 2013 Elsevier B.V.
PY - 2014/10/1
Y1 - 2014/10/1
N2 - This paper studies the factors that influence the CEO succession decision in family firms whose incumbent CEO is a member of the controlling family. The sample includes all such firms from France, Germany and the UK. We propose a new measure of directors' independence, which adjusts for various links with the controlling family. While we find that conventionally defined directors' independence has no impact on the CEO succession decision, our corrected measure reduces the likelihood of the successor being another family member. There is also evidence that firms from France that are cross-listed in the UK or USA are less likely to appoint another family CEO.
AB - This paper studies the factors that influence the CEO succession decision in family firms whose incumbent CEO is a member of the controlling family. The sample includes all such firms from France, Germany and the UK. We propose a new measure of directors' independence, which adjusts for various links with the controlling family. While we find that conventionally defined directors' independence has no impact on the CEO succession decision, our corrected measure reduces the likelihood of the successor being another family member. There is also evidence that firms from France that are cross-listed in the UK or USA are less likely to appoint another family CEO.
KW - CEO succession
KW - Corporate control and ownership
KW - Corporate governance
KW - Family firms
KW - G32
KW - G34
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U2 - 10.1016/j.jcorpfin.2013.12.006
DO - 10.1016/j.jcorpfin.2013.12.006
M3 - Article
AN - SCOPUS:84908410266
SN - 0929-1199
VL - 28
SP - 6
EP - 25
JO - Journal of Corporate Finance
JF - Journal of Corporate Finance
ER -