CEO succession and firm performance: Evidence from publicly listed Malaysian firms
This study investigates the impact of CEO succession on the financial performance of publicly listed Malaysian firms.A match-paired t-test and Wilcox on signed-rank test are used to determine if there is a change in firm performance following CEO succession.The overall results show that performance...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Universiti Sains Malaysia
2013
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/16063/1/4.pdf |
| _version_ | 1825803640536825856 |
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| 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 |
| collection | UUM |
| description | This study investigates the impact of CEO succession on the financial performance of publicly listed Malaysian firms.A match-paired t-test and Wilcox on signed-rank test are used to determine if there is a change in firm performance following CEO succession.The overall results show that performance improves following post-succession.We also find significant improvement in the performance of companies that experienced forced turnovers and subsequently selected outsiders as successors.On the other hand, forced CEO turnovers that are followed by internal successions disrupt firm performance.As CEO
successions impact firms’ future performance, the succession planning process should be a priority for firms. |
| first_indexed | 2024-07-04T06:00:23Z |
| format | Article |
| id | uum-16063 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:00:23Z |
| publishDate | 2013 |
| publisher | Universiti Sains Malaysia |
| record_format | eprints |
| spelling | uum-160632016-04-18T04:42:15Z https://repo.uum.edu.my/id/eprint/16063/ CEO succession and firm performance: Evidence from publicly listed Malaysian firms Ishak, Rokiah Ku Ismail, Ku Nor Izah Abdullah, Shamsul Nahar HD28 Management. Industrial Management This study investigates the impact of CEO succession on the financial performance of publicly listed Malaysian firms.A match-paired t-test and Wilcox on signed-rank test are used to determine if there is a change in firm performance following CEO succession.The overall results show that performance improves following post-succession.We also find significant improvement in the performance of companies that experienced forced turnovers and subsequently selected outsiders as successors.On the other hand, forced CEO turnovers that are followed by internal successions disrupt firm performance.As CEO successions impact firms’ future performance, the succession planning process should be a priority for firms. Universiti Sains Malaysia 2013 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/16063/1/4.pdf Ishak, Rokiah and Ku Ismail, Ku Nor Izah and Abdullah, Shamsul Nahar (2013) CEO succession and firm performance: Evidence from publicly listed Malaysian firms. Asian Academy of Management Journal of Accounting and Finance, 9 (2). pp. 29-48. ISSN 1823-4992 http://web.usm.my/journal/aamjaf/vol9_2_2013.html |
| spellingShingle | HD28 Management. Industrial Management Ishak, Rokiah Ku Ismail, Ku Nor Izah Abdullah, Shamsul Nahar CEO succession and firm performance: Evidence from publicly listed Malaysian firms |
| title | CEO succession and firm performance: Evidence from publicly listed Malaysian firms |
| title_full | CEO succession and firm performance: Evidence from publicly listed Malaysian firms |
| title_fullStr | CEO succession and firm performance: Evidence from publicly listed Malaysian firms |
| title_full_unstemmed | CEO succession and firm performance: Evidence from publicly listed Malaysian firms |
| title_short | CEO succession and firm performance: Evidence from publicly listed Malaysian firms |
| title_sort | ceo succession and firm performance evidence from publicly listed malaysian firms |
| topic | HD28 Management. Industrial Management |
| url | https://repo.uum.edu.my/id/eprint/16063/1/4.pdf |
| work_keys_str_mv | AT ishakrokiah ceosuccessionandfirmperformanceevidencefrompubliclylistedmalaysianfirms AT kuismailkunorizah ceosuccessionandfirmperformanceevidencefrompubliclylistedmalaysianfirms AT abdullahshamsulnahar ceosuccessionandfirmperformanceevidencefrompubliclylistedmalaysianfirms |