Journal ArticleDOI
Performance and successor choice: the moderating effects of governance and ownership
Warren Boeker,Jerry Goodstein +1 more
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In this article, the authors examined the influence of the composition of a firm's board of directors and the structure of its ownership in the choice of a chief executive successor in semiconductor producers over a 22-year period.Abstract:
This study examined influences on whether chief executive successors are chosen from inside or outside an organization. We examined the choice of a successor as a function of organizational performance as moderated by the composition of an organization's board of directors and its ownership structure. Results indicate that performance influences successor choice, but board composition, firm ownership, and ownership concentration moderate that relationship. These relationships were examined using data from 67 semiconductor producers over a 22-year period. Few events that occur in organizations are as substantively important or as open to potential contention as chief executive succession. The replacement of a chief executive can critically enhance or diminish the power of organizational members and have important consequences for an organization's future strategy and structure (Pfeffer, 1981). How a succession event occurs and who is appointed as the successor reflect the future direction of an organization and can indicate how organizational resources will be allocated in the future (Allen & Panian, 1982; Friedman & Olk, 1989). In particular, researchers have singled out whether a successor comes from inside or outside a firm as critical in succession (Reinganum, 1985). This study examined the influence of the composition of a firm's board of directors and the structure of its ownership in the choice of a chief executive successor. Following past research, we predicted that the type of successor chosen will depend on the organization's past performance. However, the particular focus of this research was on how board and ownership influences moderate the relationship between performance and successor choice.read more
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Meta-analytic reviews of board composition, leadership structure, and financial performance
TL;DR: The authors provide meta-analyses of 54 empirical studies of board composition (159 samples, n = 40,160) and 31 empirical studies on board leadership structure and their relationship to firm financial performance.
Journal ArticleDOI
Patterns of Industrial Bureaucracy.
TL;DR: In this article, an investigation of singel factory seen in the light of Max Weber's theory of bureacracy is described, and a partial report, to be followed by another, is given.
Journal ArticleDOI
Boards of Directors: A Review and Research Agenda:
TL;DR: The authors review literature addressing boards of directors from the perspective of the control, service, and resource dependence roles that directors are hypothesized to fulfill, with particular focus on that research reported after the Zahra and Pearce (1989) compendium.
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The Strategic Context of External Network Ties: Examining the Impact of Director Appointments on Board Involvement in Strategic Decision Making
TL;DR: In this article, the authors examined how external network ties determine a board's ability to contribute to the strategic decision-making process and found that the simple number of director appointments to other boards is not a good predictor of board performance.
Journal ArticleDOI
Control and Collaboration: Paradoxes of Governance
TL;DR: In this article, the authors use agency and stewardship theories to elaborate the underlying tensions and emphasize the value of monitoring, as well as empowerment in corporate governance, and conclude by discussing means of managing control and collaboration, highlighting the implications for corporate governance.
References
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Journal ArticleDOI
Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
Posted Content
An Evolutionary Theory of Economic Change
TL;DR: In this paper, the authors developed an evolutionary theory of the capabilities and behavior of business firms operating in a market environment, including both general discussion and the manipulation of specific simulation models consistent with that theory.
Journal ArticleDOI
Separation of ownership and control
Eugene F. Fama,Michael C. Jensen +1 more
TL;DR: The authors argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. But they do not consider the role of decision agents in these organizations.
Book
An evolutionary theory of economic change
TL;DR: In this paper, the authors present an Evolutionary Model of Economic Growth as a Pure Selection Process and a Schumpeterian Competition for economic growth in the United States, with a focus on the evolution of public policies and the role of analysis.