executive succession, CEO duality, stewardship theory, agency theory
Based on a sample of large, publicly traded German companies, we study performance
implications of CEO duality for executive succession events. We find that CEO dismissals are more frequent at low levels of pre-succession market-based performance and CEO duality. Postsuccession sales growth and operating earnings are higher for firms with CEO dismissals and CEO duality. Our results provide partial support to stewardship theory and no support to agency theory.
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