Dismissal of Newly Appointed CEOs: A Behavioral Theory Perspective

Seok-hyun Hwang, Theresa S. Cho, Dominic Heesang Chai

Research output: Chapter in book/report/conference proceedingConference proceedingpeer-review


This study examines the role of former CEO performance on dismissal of newly appointed CEOs. Drawing from behavioral theory, we propose that when the performance of newly appointed CEO is below that of the former CEO, the new CEO is more likely to be dismissed soon after his appointment. In addition, we examine firm size as a moderator in this linkage between former CEO performance and dismissal of the newly appointed CEO. Specifically, we predict that in larger the firms, the impact of board's comparison between the predecessor's performance on the successor would be reduced. The results of from our analysis of CEO dismissal events among S&P 500 companies between 2001-2005 generally support our predictions.
Original languageEnglish
Title of host publicationAcademy of Management Proceedings 2012
EditorsSonia Taneja
PublisherAcademy of Management
Publication statusPublished - 1 Jul 2012
Event72nd Annual Meeting of the Academy of Management, AOM 2012: The Informal Economy - Boston, United States
Duration: 3 Aug 20127 Aug 2012
http://pd.aom.org/2012/subMenu.asp?mode=setmenu&menuid=14 (Conference program)
https://journals.aom.org/toc/amproc/2012/1 (Conference proceedings)

Publication series

NameAcademy of Management Proceedings
ISSN (Print)0065-0668
ISSN (Electronic)2151-6561


Conference72nd Annual Meeting of the Academy of Management, AOM 2012
Country/TerritoryUnited States
Internet address


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