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CEO Succession and New-Firm Performance: Does Successor Origin Matter?

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  • Masatoshi Kato

    (School of Economics, Kwansei Gakuin University)

  • Yuji Honjo

    (Faculty of Commerce, Chuo University)

Abstract

This study explores the impact of chief executive officer (CEO) succession on new-firm performance, using a sample of Japanese firms founded during the period 2003–2010. When controlling for firm- and CEO-specific characteristics, we find that new firms with experience in CEO succession are more likely to increase sales than those without it. The results also reveal that CEO succession influences sales growth among new firms, but not employment growth. Moreover, based on successor origin, we classify the types of CEO succession, such as inside, outside, and family succession. The results reveal that both insider and outsider succession influences sales growth, while family succession does not.

Suggested Citation

  • Masatoshi Kato & Yuji Honjo, 2020. "CEO Succession and New-Firm Performance: Does Successor Origin Matter?," Discussion Paper Series 213, School of Economics, Kwansei Gakuin University.
  • Handle: RePEc:kgu:wpaper:213
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    More about this item

    Keywords

    CEO succession; Growth; Insider succession; Outsider succession; New firm; Successor origin.;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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