Seminar by Prof. Brian Connelly, Auburn University
Event details
| Date | 14.05.2019 |
| Hour | 12:00 › 13:30 |
| Speaker | Prof. Brian Connelly, Auburn University |
| Location | |
| Category | Conferences - Seminars |
"CEO Dismissal: Consequences for Competitors"
Abstract
We propose that CEO dismissal can change the strategic decision-making of CEOs at competing firms. We suggest competitor CEOs will experience an increase in job insecurity, which motivates them to refrain from strategic risk taking. We identify a key boundary condition that shapes the influence of CEO dismissal on competitor CEOs’ risk taking and consider the performance implications of this phenomenon. We use a sample of CEO dismissals among S&P 1500 firms to test the hypothesized responses of competitors. We also test the underlying theoretical mechanism using a complementary policy capturing study with top executives. Taken together, these studies advance CEO dismissal research by investigating the spillover effect of CEO dismissal.
Abstract
We propose that CEO dismissal can change the strategic decision-making of CEOs at competing firms. We suggest competitor CEOs will experience an increase in job insecurity, which motivates them to refrain from strategic risk taking. We identify a key boundary condition that shapes the influence of CEO dismissal on competitor CEOs’ risk taking and consider the performance implications of this phenomenon. We use a sample of CEO dismissals among S&P 1500 firms to test the hypothesized responses of competitors. We also test the underlying theoretical mechanism using a complementary policy capturing study with top executives. Taken together, these studies advance CEO dismissal research by investigating the spillover effect of CEO dismissal.
Practical information
- General public
- Free