Session Details: Session 1093

Succesion and Team Dynamics

Track F

Date: Tuesday, October 14, 2008

 

Time: 11:15 – 12:30

Paper

Room: Salon 21


Session Chair:
Margarethe Wiersema, University of California, Irvine

Title: CEO Dismissal and the Role of Investment Analysts

Authors

  • Margarethe Wiersema, University of California, Irvine
  • Yan Anthea Zhang, Rice University

Abstract: While poor performance and internal agency conditions have been shown to be predictors of CEO dismissal, little is known about the role of the firm’s external constituents in CEO dismissal. In this study, we argue that investment analysts, through their reports and ratings, serve an important external monitoring role over corporate behavior. Therefore, we expect that investment analysts can influence the board’s evaluation of the firm and its leadership. We find that board dismissal of the CEO occurs more frequently for firms with more negative investment analyst ratings, providing strong support for their external monitoring role.

Title: CEO Dismissal: The Impact of Strategic Choice and Expertise

Authors

  • Nikolaos Kavadis, Carlos III University of Madrid
  • Margarethe Wiersema, University of California, Irvine
  • Yan Anthea Zhang, Rice University

Abstract: Drawing on agency and upper echelons perspectives, we investigate how corporate diversification may impact the likelihood of CEO dismissal within a sample of large French companies in the 1995-2005 time period. Applying an agency perspective on what comprises shareholder wealth maximization strategies, we show that the board evaluates the CEO based on her/his choice of strategy for the firm, independently of the accounting and stock market performance of the firm. We also demonstrate that the CEO’s functional expertise matters in terms of the board’s willingness to discipline the CEO when pursuing a strategy believed to be value-destroying.

Title: Company Succession in SMEs: Do Intangible Assets Matter?

Authors

  • Susanne Durst, University of Liechtenstein
  • Stefan Gueldenberg, University of Liechtenstein

Abstract: Recent academic literature suggests that besides financial and tangible resources knowledge represents one of the crucial aspects of company success in all organizations. Assuming this is true, what role does this intangible assets play in the context of SME company succession. As in the next years many SME owner will leave their firm, this paper explores the role of intangible assets in company succession seen from an external successor. Since little empirical research exists, we followed an explorative approach by applying a mixed methods approach. We conducted a web-survey with German associations and interviews with external successors. Results from this study will help extending the current knowledge in the field of research and providing recommendations for actions for potential successors as well as predecessors.

Title: What Do CEOs Do? Testing a Model on How CEOs Add Value

Authors

  • Alejandro Carrera, Austral University
  • Juan Quiroga, INSEAD

Abstract: The present study tests the theoretical framework on how CEOs add value proposed by Carrera et al (2006). According to this model, CEOs must manage three main processes for accomplishing their mission of providing continuity to their organizations: Business, Management, and Institutional Configuration Processes. This study tests the model through a survey with 89 CEOs, from medium to large Argentine firms and multinational companies within Argentina. Research results backed up the theoretical framework. To a further extent the study evidences inconsistencies between CEOs perception of their main concerns and the actual allocation of time they do daily to their tasks. In addition, by sample segmentation (concerning age, experience, capital origin and type of organization analysed), some broad differences among CEOs arose.

All Sessions in Track F...

Mon: 11:15 – 12:30
Session 1089: Make, Ally or Buy
Session 1096: Executive Compensation
Mon: 15:30 – 16:45
Session 1086: Alternative Views of Value Creation
Session 1090: CEO Pay
Session 1107: Executive and External Forces in Strategy
Mon: 17:00 – 18:15
Session 1091: Impression Management
Session 1098: Social Networks
Tue: 11:15 – 12:30
Session 1093: Succesion and Team Dynamics
Session 1103: Social and Human Capital
Tue: 14:30 – 15:45
Session 1095: Diversification
Session 1105: Governance Perspectives
Wed: 10:00 – 11:15
Session 1104: Managing Alliance Relationships
Session 1106: New Corporate Strategy Perspectives
Wed: 11:30 – 12:45
Session 1088: Acquisitive Growth Strategies
Session 1092: Dynamic Strategies and Resources


Strategic Management Society

Cologne Conference