Template-Type: ReDIF-Article 1.0
Author-Name: Rokiah Ishak
Author-Workplace-Name: School of Accountancy, UUM College of Business, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia
Author-Name: Ku Nor Izah Ku Ismail
Author-Workplace-Name: School of Accountancy, UUM College of Business, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia
Author-Email: norizah@uum.edu.my
Author-Name: Shamsul Nahar Abdullah
Author-Workplace-Name: Department of Accounting, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Malaysia
Title: CEO Succession and Firm Performance: Evidence from Publicly Listed Malaysian Firms
Abstract: This study investigates the impact of CEO succession on the financial performance of publicly listed Malaysian firms. A match-paired t-test and Wilcoxon 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.
Classification-JEL:
Keywords: CEO succession, post-succession performance, forced turnover, voluntary turnover, internal successor, outside successor
Journal: Asian Academy of Management Journal of Accounting and Finance
Pages: 29-48
Volume: 9
Issue: 2
Year: 2013
File-URL: http://web.usm.my/journal/aamjaf/vol 9-2-2013/AAMJAF 9-2-art 2 (29-48)-edited.pdf 
File-Format: Application/pdf
Handle: RePEc:usm:journl:aamjaf00902_29-48