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National power distance, status incongruence, and CEO dismissal

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  • Li, Weiwen
  • Lu, Yuan
  • Makino, Shige
  • Lau, Chung-Ming

Abstract

Using a large database of public companies from 22 countries, we examine the independent and interactive effects of national power distance and status incongruence on the likelihood of CEO dismissal. Status incongruence exists in a top management team when there is an inconsistency of social status and hierarchical status among top management team members. We find that whereas national power distance decreases the likelihood of CEO dismissal, status incongruence has a positive effect on CEO dismissal. Furthermore, the positive effect of status incongruence is more salient in high power distance societies.

Suggested Citation

  • Li, Weiwen & Lu, Yuan & Makino, Shige & Lau, Chung-Ming, 2017. "National power distance, status incongruence, and CEO dismissal," Journal of World Business, Elsevier, vol. 52(6), pages 809-818.
    • Handle: RePEc:eee:worbus:v:52:y:2017:i:6:p:809-818
    DOI: 10.1016/j.jwb.2017.08.001
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    1. Ma, Xufei & Deng, Ziliang & Tang, Yi, 2021. "Relieving status anxiety: How low-status firms respond to international status-heterophilous relationships," Journal of World Business, Elsevier, vol. 56(6).

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