The determinants of the CEO successor choice in family firms

Iram Fatima Ansari, Marc Goergen, Svetlana Mira

Research output: Contribution to journalArticle

16 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)6-25
Number of pages20
JournalJournal of Corporate Finance
Volume28
DOIs
Publication statusPublished - Oct 1 2014

Fingerprint

Family firms
Chief executive officer
France
Director independence
CEO succession
Influence factors
Germany
Incumbents

Keywords

  • CEO succession
  • Corporate control and ownership
  • Corporate governance
  • Family firms
  • G32
  • G34

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Economics and Econometrics
  • Strategy and Management

Cite this

The determinants of the CEO successor choice in family firms. / Ansari, Iram Fatima; Goergen, Marc; Mira, Svetlana.

In: Journal of Corporate Finance, Vol. 28, 01.10.2014, p. 6-25.

Research output: Contribution to journalArticle

@article{23d011432d7a4ef58deca4c87555be64,
title = "The determinants of the CEO successor choice in family firms",
abstract = "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.",
keywords = "CEO succession, Corporate control and ownership, Corporate governance, Family firms, G32, G34",
author = "Ansari, {Iram Fatima} and Marc Goergen and Svetlana Mira",
year = "2014",
month = "10",
day = "1",
doi = "10.1016/j.jcorpfin.2013.12.006",
language = "English",
volume = "28",
pages = "6--25",
journal = "Journal of Corporate Finance",
issn = "0929-1199",
publisher = "Elsevier",

}

TY - JOUR

T1 - The determinants of the CEO successor choice in family firms

AU - Ansari, Iram Fatima

AU - Goergen, Marc

AU - Mira, Svetlana

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

UR - http://www.scopus.com/inward/record.url?scp=84908410266&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84908410266&partnerID=8YFLogxK

U2 - 10.1016/j.jcorpfin.2013.12.006

DO - 10.1016/j.jcorpfin.2013.12.006

M3 - Article

VL - 28

SP - 6

EP - 25

JO - Journal of Corporate Finance

JF - Journal of Corporate Finance

SN - 0929-1199

ER -