| With the rising degree of dynamic and complication of enterprise external environment,the urgency of implementing strategic change has brought unprecedented challenges to theenterprise’s CEO. The shareholders will replace the incumbent CEO if he/she is not thinked ofbeing quality enough to in charge of the enterprise strategic change, which will cause theCEO succession in the enterprise. For the reason that every year in Chinese listed companies,the replacement of chairman and manager case abound, it is necessery and senseful to studyon the relationship between the succession of corporate core executive, strategic change andperformance improvement. On the base of overview of Resource Dependence Theory, UpperEchelon Theory, Managerial Discretion Theory and previous academic achievements, byfocusing on the effect of fit between the key factors of the CEO succession, which are theincumbent CEO and the CEO successor, to the enterprise strategy and firm performance, thestudy turns to shed light on the effect of CEO succession on enterprise strategy change andperformance.On the basis of theoretical analysis, the paper selects539listed companies of CEOturnover bewteen2006-2008to investigate how the CEO succession influences strategicchange and firm performance. The results are as follows: Firstly, external CEO successorhave a significant impact on strategic change, no matter that in the nondiversified firms anddivesified firms. Secondly, in the diversified firms, under the circumstance that formercoperate CEO is being forced to dimission, the promotion of outside CEO successor on theenterprise strategic change is less than that in the circumstance under which former coperateCEO is not being forced to dimission. Thirdly, in the diversified firms, the situation that theformaer CEO stays on as senior executive after CEO succession weakens signifcantly thepositive correlation between CEO‘s outsideness and the stragetic change. Forthly, externalsuccessor CEO who is both manager and board chair strengthens the positive correlationbetween CEO‘s outsideness and the stragetic change both in nondiversified and divesifiedfirms. Fifthly, the adjustment of senior management team after CEO succession has differenteffects on strategic change depending on the firm style. |
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