Does the origin of a succession CEO matter in the market value of innovation? Disentangling the origin of internal CEOs

摘要

This study complements previous research regarding CEO origin and family businesses by incorporating upper echelons theory with the perspective of family effect as well as disentangling CEO origin to provide a better understanding of how external, unrelated internal, and family succession CEOs affect innovation performance. We further reveal how a family founder helps improve the value of innovations undertaken by family heirs. The results show that firms with unrelated internal succession CEOs experience higher (lower) stock market reactions to innovation announcements than those with family (external) succession CEOs. Founders serving on the board reduce the negative effect between family heirs and innovation performance. Copyright (c) 2016 ASAC. Published by John Wiley & Sons, Ltd.