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International experience and CEO selection: An empirical study

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  • Magnusson, Peter
  • Boggs, David J.

Abstract

This paper extends the upper-echelons theory by examining if observable demographic characteristics can be used to predict CEO selections. Based on an empirical analysis of recent successions at USA Fortune 200 companies, it identifies international experience as an important construct associated with accession to the CEO position of large corporations. The study also finds that CEO international experience is higher in firms that are highly international in terms of sales and assets. Firm and individual control variables are discussed and included in the empirical analysis. Managerial implications and suggestions for related future research are provided.

Suggested Citation

  • Magnusson, Peter & Boggs, David J., 2006. "International experience and CEO selection: An empirical study," Journal of International Management, Elsevier, vol. 12(1), pages 107-125, March.
    • Handle: RePEc:eee:intman:v:12:y:2006:i:1:p:107-125
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    2. Dimitrios Georgakakis & Winfried Ruigrok, 2017. "CEO Succession Origin and Firm Performance: A Multilevel Study," Journal of Management Studies, Wiley Blackwell, vol. 54(1), pages 58-87, January.
    3. Greve, Peder & Biemann, Torsten & Ruigrok, Winfried, 2015. "Foreign executive appointments: A multilevel examination," Journal of World Business, Elsevier, vol. 50(4), pages 674-686.
    4. Germán Enrique Nova Caldas, 2016. "La internacionalización de las empresas en Colombia," Working Papers 04/16, Instituto Universitario de Análisis Económico y Social.
    5. Conyon, Martin J. & Haß, Lars Helge & Vergauwe, Skrålan & Zhang, Zhifang, 2019. "Foreign experience and CEO compensation," Journal of Corporate Finance, Elsevier, vol. 57(C), pages 102-121.
    6. Jan Henrik Gruenhagen & Sukanlaya Sawang & Scott R. Gordon & Per Davidsson, 2018. "International experience, growth aspirations, and the internationalisation of new ventures," Journal of International Entrepreneurship, Springer, vol. 16(3), pages 421-440, September.
    7. Georgakakis, Dimitrios & Dauth, Tobias & Ruigrok, Winfried, 2016. "Too much of a good thing: Does international experience variety accelerate or delay executives’ career advancement?," Journal of World Business, Elsevier, vol. 51(3), pages 425-437.
    8. Gianpaolo Abatecola & Matteo Cristofaro, 2019. "Ingredients of Sustainable CEO Behaviour: Theory and Practice," Sustainability, MDPI, vol. 11(7), pages 1-15, April.
    9. Schmid, Stefan & Wurster, Dennis J., 2017. "International work experience: Is it really accelerating the way to the management board of MNCs?," International Business Review, Elsevier, vol. 26(5), pages 991-1008.
    10. Stefan Schmid & Tobias Dauth, 2012. "Internationale Diversität im Top-Management — Eine empirische Analyse der DAX-30-Unternehmen," Schmalenbach Journal of Business Research, Springer, vol. 64(7), pages 772-802, November.
    11. Parracho João & Silva Susana, 2021. "Measuring Experience in International Business: A Systematic Literature Review," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 66(2), pages 38-55, August.
    12. Yang Liu & Fukang Zhang & Han Zhang, 2024. "CEO foreign experience and corporate environmental, social, and governance (ESG) performance," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3331-3355, May.
    13. Jeoung Yul Lee & Daekwan Kim & Byungchul Choi & Alfredo Jiménez, 2023. "Early evidence on how Industry 4.0 reshapes MNEs’ global value chains: The role of value creation versus value capturing by headquarters and foreign subsidiaries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(4), pages 599-630, June.
    14. Lutz Sommer, 2010. "Internationalization processes of small- and medium-sized enterprises—a matter of attitude?," Journal of International Entrepreneurship, Springer, vol. 8(3), pages 288-317, September.
    15. Schmid, Stefan & Dauth, Tobias, 2014. "Does internationalization make a difference? Stock market reaction to announcements of international top executive appointments," Journal of World Business, Elsevier, vol. 49(1), pages 63-77.
    16. Ilya R. P. Cuypers & Charmi Patel & Gokhan Ertug & Jiatao Li & Youtha Cuypers, 2022. "Top management teams in international business research: A review and suggestions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 481-515, April.
    17. Dimitrova, Mihaela & Chia, Sherwin Ignatius & Shaffer, Margaret A. & Tay-Lee, Cheryl, 2020. "Forgotten travelers: Adjustment and career implications of international business travel for expatriates," Journal of International Management, Elsevier, vol. 26(1).
    18. Schmid, Stefan & Altfeld, Frederic, 2018. "International work experience and compensation: Is more always better for CFOs?," European Management Journal, Elsevier, vol. 36(4), pages 530-543.
    19. Stefan Schmid & Sebastian Baldermann, 2021. "CEOs’ International Work Experience and Compensation," Management International Review, Springer, vol. 61(3), pages 313-364, June.

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