Determinants of internal vs. external CEO successions in Malaysian public listed companies

Following a CEO turnover, a company may select an internal or external successor. The objective of this study is to determine if firm performance, board attributes, ownership structure and incumbent power influence the decision of whether to elect an internal or external candidate. Results from logi...

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Main Authors:	Ishak, Rokiah, Ku Ismail, Ku Nor Izah, Abdullah, Shamsul Nahar
Format:	Article
Language:	English
Published:	Asian Academy of Management and Penerbit Universiti Sains Malaysia 2012
Subjects:	HF5387 Business ethics
Online Access:	http://irep.iium.edu.my/26437/ http://irep.iium.edu.my/26437/ http://irep.iium.edu.my/26437/1/DETERMINANTS_OF_INTERNAL_VS._EXTERNAL.pdf

id	iium-26437
recordtype	eprints
spelling	iium-264372013-07-15T05:08:28Z http://irep.iium.edu.my/26437/ Determinants of internal vs. external CEO successions in Malaysian public listed companies Ishak, Rokiah Ku Ismail, Ku Nor Izah Abdullah, Shamsul Nahar HF5387 Business ethics Following a CEO turnover, a company may select an internal or external successor. The objective of this study is to determine if firm performance, board attributes, ownership structure and incumbent power influence the decision of whether to elect an internal or external candidate. Results from logit regression analysis on 145 succession events over a four- year period (2002 to 2005) indicate that firms which are controlled by blockholders tend to select an outsider as the successor. Further, firms that are controlled by family members and disposition their predecessors are more likely to select an insider as the successor. However, firm performance does not affect the selection choice. As far as performance is concerned, this study supports the contingency view which believes that board of directors react differently to similar performance information due to several sociopolitical factors that may moderate the relationship between firm performance and CEO selection choice. Asian Academy of Management and Penerbit Universiti Sains Malaysia 2012 Article PeerReviewed application/pdf en http://irep.iium.edu.my/26437/1/DETERMINANTS_OF_INTERNAL_VS._EXTERNAL.pdf Ishak, Rokiah and Ku Ismail, Ku Nor Izah and Abdullah, Shamsul Nahar (2012) Determinants of internal vs. external CEO successions in Malaysian public listed companies. Asian Academy of Management Journal, 17 (2). pp. 79-96. ISSN 1394-2603 http://web.usm.my/aamj/current.html
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5387 Business ethics
spellingShingle	HF5387 Business ethics Ishak, Rokiah Ku Ismail, Ku Nor Izah Abdullah, Shamsul Nahar Determinants of internal vs. external CEO successions in Malaysian public listed companies
description	Following a CEO turnover, a company may select an internal or external successor. The objective of this study is to determine if firm performance, board attributes, ownership structure and incumbent power influence the decision of whether to elect an internal or external candidate. Results from logit regression analysis on 145 succession events over a four- year period (2002 to 2005) indicate that firms which are controlled by blockholders tend to select an outsider as the successor. Further, firms that are controlled by family members and disposition their predecessors are more likely to select an insider as the successor. However, firm performance does not affect the selection choice. As far as performance is concerned, this study supports the contingency view which believes that board of directors react differently to similar performance information due to several sociopolitical factors that may moderate the relationship between firm performance and CEO selection choice.
format	Article
author	Ishak, Rokiah Ku Ismail, Ku Nor Izah Abdullah, Shamsul Nahar
author_facet	Ishak, Rokiah Ku Ismail, Ku Nor Izah Abdullah, Shamsul Nahar
author_sort	Ishak, Rokiah
title	Determinants of internal vs. external CEO successions in Malaysian public listed companies
title_short	Determinants of internal vs. external CEO successions in Malaysian public listed companies
title_full	Determinants of internal vs. external CEO successions in Malaysian public listed companies
title_fullStr	Determinants of internal vs. external CEO successions in Malaysian public listed companies
title_full_unstemmed	Determinants of internal vs. external CEO successions in Malaysian public listed companies
title_sort	determinants of internal vs. external ceo successions in malaysian public listed companies
publisher	Asian Academy of Management and Penerbit Universiti Sains Malaysia
publishDate	2012
url	http://irep.iium.edu.my/26437/ http://irep.iium.edu.my/26437/ http://irep.iium.edu.my/26437/1/DETERMINANTS_OF_INTERNAL_VS._EXTERNAL.pdf
first_indexed	2023-09-18T20:39:24Z
last_indexed	2023-09-18T20:39:24Z
_version_	1777409263528837120

Determinants of internal vs. external CEO successions in Malaysian public listed companies

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