Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 23, 2014 erstellt
Beschreibung:
We examine the influences of top management succession on firm strategies in the case of innovation. Our main results show that top manager changes result in less innovation in Chinese listed companies. The evidence supports the hypothesis that succession events exert much pressure on managers to meet short-run earning expectations, hindering firms' investment in long-term value creation projects. Moreover, our moderating effects examinations exhibit that: different types of successions lead to different levels of innovation decline; the succession-innovation relationship are also moderated by lots of firm contextual features. To establish causality of succession-innovation relation, we introduce a rich set of tests to rule out competitive hypothesis concerns. Meanwhile, our robust test further supports our principal conclusion about succession-innovation relationship. Our study offers straight and comprehensive evidence on a previously under-explored adverse consequence of top management succession — its harmful effect on firm innovation