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Succession planning and firm innovation

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  • Zhou, Fuzhao

Abstract

In this study, I investigate the relationship between CEO succession planning and firm innovation. I find that having a CEO succession plan is negatively associated with innovation. Furthermore, CEO succession planning's negative effect on firm innovation is more pronounced in smaller and more profitable firms. Additionally, CEO succession planning negatively impacts company value. I contend that it is crucial for organizations to consider CEO succession planning's potential negative effects on innovation and take precautions to minimize them. These results provide valuable insights for academics, investors, managers, and regulators.

Suggested Citation

  • Zhou, Fuzhao, 2023. "Succession planning and firm innovation," Finance Research Letters, Elsevier, vol. 58(PA).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323006864
    DOI: 10.1016/j.frl.2023.104314
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    More about this item

    Keywords

    Firm innovation; Succession planning; Firm value;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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