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 contributionpeer-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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