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CEO tenure and firm growth: A conditional analysis

Author

Listed:
  • Pascal Nguyen

    (ESDES - Catholic University of Lyon)

  • Tarek Miloud

    (INSEEC Business School)

  • Ruoyun Zhao

    (University of Technology Sydney)

Abstract

This paper investigates the influence that CEO tenure may have on firm growth. We hypothesize that the effect of CEO tenure is conditional on the firm's growth rate. The empirical analysis reveals that the effect on growth is negative in high-growth firms and positive in low-growth firms. These findings are consistent with the view that long CEO tenure is beneficial in a more stable environment, but detrimental under rapidly-changing circumstances.

Suggested Citation

  • Pascal Nguyen & Tarek Miloud & Ruoyun Zhao, 2017. "CEO tenure and firm growth: A conditional analysis," Economics Bulletin, AccessEcon, vol. 37(4), pages 2301-2308.
    • Handle: RePEc:ebl:ecbull:eb-17-00588
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    File URL: http://www.accessecon.com/Pubs/EB/2017/Volume37/EB-17-V37-I4-P206.pdf
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Firm growth; sales growth; CEO tenure; quantile regression; Australia;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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