Relationship between Corporate CEO Succession Planning and Corporate Performance

IF 2.6 4区经济学 Q3 BUSINESS Amfiteatru Economic Pub Date : 2023-08-01 DOI:10.24818/ea/2023/64/885

Z. Yin, Jiamei Ye, Xiaoying Wang, Fang Su

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Abstract

In an increasingly competitive market environment, as an important decision for strategic change, CEO succession is a key step to driving sustainable development. The formulation of succession plans and how to improve the effectiveness of internal promotion mechanisms have been researched topics in executive team management. To explore the relationship between corporate executive succession planning and corporate performance, using 3955 CEO succession samples from 2599 companies during 2001-2015 in China, the Probit model, and the two-stage least squares method, the relationship between corporate CEO succession planning and corporate performance under the director-cum-CEO succession model was analysed. The results reveal that the formulation or not of succession plans in firms, particularly in listed firms, directly affects firm performance. Director-CEO internal succession decisions reduce firm performance relative to other CEO succession models. Conclusions obtained from this study indicate the relationship between succession planning and organisational performance at the micro level and provide a theoretical reference to further promote research related to succession decisions in listed companies and the long-term development interests of firms

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企业CEO继任规划与企业绩效的关系

在竞争日益激烈的市场环境中，CEO继任作为战略变革的重要决策，是推动可持续发展的关键一步。继任计划的制定以及如何提高内部晋升机制的有效性一直是高管团队管理中的研究课题。为了探讨企业高管继任计划与企业绩效的关系，采用2001-2015年中国2599家公司的3955个CEO继任样本，运用Probit模型和两阶段最小二乘法，分析了董事兼CEO继任模型下企业CEO继任计划与公司绩效的关系。研究结果表明，企业特别是上市公司继任计划的制定与否，直接影响企业绩效。相对于其他CEO继任模型，董事-CEO内部继任决策会降低公司业绩。本研究的结论从微观层面揭示了继任计划与组织绩效之间的关系，为进一步推动上市公司继任决策和企业长期发展利益的研究提供了理论参考

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