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CEO succession with gender change in troubled companies: The effect of a new woman CEO on firm risk and firm risk perceived

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  • Rigolini, Alessandra
  • Gabaldon, Patricia
  • Le Bruyn Goldeng, Eskil

Abstract

The replacement of the CEO is one of the first actions a troubled company may take to recover from a critical situation. In this paper, we analyze the change in firm risk and firm risk perception when women are replacing men as CEOs of troubled companies. The analyses are based on a comprehensive dataset covering all registered companies in Norway from 2005 to 2014. We argue that a new woman CEOs increase the chances of improving the risk situation of troubled companies. Building on CEO succession and social identity theories, we study the firm risk situation under the lenses of risk perception and firm risk, and we find that a newly appointed woman CEO, following a man, tend to decrease the level of risk of the company. Furthermore, we find counterbalancing effects on these changes given the moderation effect of women on the board.

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  • Rigolini, Alessandra & Gabaldon, Patricia & Le Bruyn Goldeng, Eskil, 2021. "CEO succession with gender change in troubled companies: The effect of a new woman CEO on firm risk and firm risk perceived," Scandinavian Journal of Management, Elsevier, vol. 37(1).
    • Handle: RePEc:eee:scaman:v:37:y:2021:i:1:s0956522120302554
    DOI: 10.1016/j.scaman.2020.101138
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