Affordable Access

Access to the full text

Whether CEO Succession Via Hierarchical Jumps is Detrimental or Blessing in Disguise? Evidence from Chinese Listed Firms

Authors
  • Shah, Syed Ghulam Meran
  • Sarfraz, Muddassar
  • Fareed, Zeeshan1
  • Rehman, Muhammad Ateeq ur
  • Maqbool, Adnan
  • Qureshi, Muhammad Asim Ali2
  • 1 Huzhou University, China , (China)
  • 2 Southwestern University of Finance and Economics , (China)
Type
Published Article
Journal
Zagreb International Review of Economics and Business
Publisher
Sciendo
Publication Date
Nov 01, 2019
Volume
22
Issue
2
Pages
23–41
Identifiers
DOI: 10.2478/zireb-2019-0018
Source
De Gruyter
Keywords
License
Green

Abstract

This study investigates the impact of hierarchical jumps in the CEO’s succession on firms’ financial performance. To contemplate deeply, hierarchical jumps have been categorized into high and low level evaluating the positive impact of high-level hierarchical jump on firms’ performance. Moreover, this study has also formulated hierarchical intensity signifying the idea that despite neglecting senior board members during hierarchical jumps, still marginal increment in the firms’ growth has been observed. Using panel regression technique along with 2sls instrumental regression, this research reveals that hierarchical jumps in CEOs successions are more conducive only if the incumbent CEOs are selected irrespective of age, degree or high hierarchical position within the hierarchical ladder. Lastly, this study enunciates that firms having high total assets boost their performance via hierarchical jumps emphatically.

Report this publication

Statistics

Seen <100 times