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An examination of a firm's use of a short term succession plan using an interim CEO to facilitate CEO turnover
Descriptive
TitleInfo
Title
An examination of a firm's use of a short term succession plan using an interim CEO to facilitate CEO turnover
Name
(type = personal)
NamePart
(type = family)
DiSalvio
NamePart
(type = given)
Joan
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Joan DiSalvio
Role
RoleTerm
(authority = RULIB)
author
Name
(type = personal)
NamePart
(type = family)
Gordon
NamePart
(type = given)
Elizabeth A
DisplayForm
Elizabeth A Gordon
Affiliation
Advisory Committee
Role
RoleTerm
(authority = RULIB)
chair
Name
(type = personal)
NamePart
(type = family)
Palmon
NamePart
(type = given)
Dan
DisplayForm
Dan Palmon
Affiliation
Advisory Committee
Role
RoleTerm
(authority = RULIB)
internal member
Name
(type = personal)
NamePart
(type = family)
Lee
NamePart
(type = given)
Cheng Few
DisplayForm
Cheng Few Lee
Affiliation
Advisory Committee
Role
RoleTerm
(authority = RULIB)
internal member
Name
(type = personal)
NamePart
(type = family)
Balsam
NamePart
(type = given)
Stephen
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Stephen Balsam
Affiliation
Advisory Committee
Role
RoleTerm
(authority = RULIB)
outside member
Name
(type = corporate)
NamePart
Rutgers University
Role
RoleTerm
(authority = RULIB)
degree grantor
Name
(type = corporate)
NamePart
Graduate School - Newark
Role
RoleTerm
(authority = RULIB)
school
TypeOfResource
Text
Genre
(authority = marcgt)
theses
OriginInfo
DateCreated
(qualifier = exact)
2011
DateOther
(qualifier = exact);
(type = degree)
2011-05
Place
PlaceTerm
(type = code)
xx
Language
LanguageTerm
(authority = ISO639-2b);
(type = code)
eng
Subject
(authority = RUETD)
Topic
Management
Subject
(authority = ETD-LCSH)
Topic
Chief executive officers
Subject
(authority = ETD-LCSH)
Topic
Executive succession
Subject
(authority = ETD-LCSH)
Topic
Executives--Recruiting
RelatedItem
(type = host)
TitleInfo
Title
Rutgers University Electronic Theses and Dissertations
Identifier
(type = RULIB)
ETD
RelatedItem
(type = host)
TitleInfo
Title
Graduate School - Newark Electronic Theses and Dissertations
Identifier
(type = local)
rucore10002600001
PhysicalDescription
Form
(authority = gmd)
electronic resource
Note
Supplementary File: Tables, References and Appendices
InternetMediaType
application/pdf
InternetMediaType
text/xml
Extent
iv, 42 p. : ill.
Note
(type = degree)
Ph.D.
Note
(type = bibliography)
Includes bibliographical references
Note
(type = vita)
Includes vita
Note
(type = statement of responsibility)
by Joan DiSalvio
Abstract
(type = abstract)
This study examines a firm’s use of a short term succession plan using an Interim Chief Executive Officer (ICEO) to facilitate CEO turnover. NYSE requirements and prior research support the use of permanent successors and the NYSE demands firms have a short term succession plan. The results of this study provide evidence on the costs and benefits of using an interim ICEO as part of a short term succession plan versus naming a permanent successor. I find that firms who replace a CEO using an interim CEO as part of a short term succession plan experience large negative abnormal returns at the departure announcement, whether the CEO departure is voluntary or involuntary. Subsequently, after an involuntary departure, I find the use of interim CEOs is associated with large positive abnormal returns at the announcement of the eventual permanent successor, whether that successor is an insider or outsider. The net effect (initial negative plus the subsequent positive reaction) associated with the use of an interim CEO who replaces a CEO who leaves involuntarily is ironically a less negative outcome than if a firm chooses an immediate successor. However, if the CEO departs voluntarily, the shareholders are heavily penalized when an interim CEO is used as part of a short term succession plan. This is contrary to prior CEO literature which finds no abnormal returns upon replacement of a departing CEO who leaves voluntarily. I find that firms use interim CEOs as part of a short term succession plan at a rate of 11% of all turnovers between 2000 and 2005. I find the mean tenure of an interim CEO, and duration of the short term succession plan, is 201 days, which could allow timely replacement and careful assessment of a replacement. I also describe the characteristics of interim CEOs and identify the governance characteristics of firms who use them.
Identifier
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http://hdl.rutgers.edu/1782.1/rucore10002600001.ETD.000061052
Location
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(displayLabel = Rutgers, The State University of New Jersey)
NjNbRU
Identifier
(type = doi)
doi:10.7282/T3571BDZ
Genre
(authority = ExL-Esploro)
ETD doctoral
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Rights
RightsDeclaration
(ID = rulibRdec0006)
The author owns the copyright to this work.
RightsHolder
(type = personal)
Name
FamilyName
DiSalvio
GivenName
Joan
Role
Copyright Holder
RightsEvent
Type
Permission or license
DateTime
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(qualifier = exact);
(point = start)
2011-04-28 13:56:31
AssociatedEntity
Name
Joan DiSalvio
Role
Copyright holder
Affiliation
Rutgers University. Graduate School - Newark
AssociatedObject
Type
License
Name
Author Agreement License
Detail
I hereby grant to the Rutgers University Libraries and to my school the non-exclusive right to archive, reproduce and distribute my thesis or dissertation, in whole or in part, and/or my abstract, in whole or in part, in and from an electronic format, subject to the release date subsequently stipulated in this submittal form and approved by my school. I represent and stipulate that the thesis or dissertation and its abstract are my original work, that they do not infringe or violate any rights of others, and that I make these grants as the sole owner of the rights to my thesis or dissertation and its abstract. I represent that I have obtained written permissions, when necessary, from the owner(s) of each third party copyrighted matter to be included in my thesis or dissertation and will supply copies of such upon request by my school. I acknowledge that RU ETD and my school will not distribute my thesis or dissertation or its abstract if, in their reasonable judgment, they believe all such rights have not been secured. I acknowledge that I retain ownership rights to the copyright of my work. I also retain the right to use all or part of this thesis or dissertation in future works, such as articles or books.
RightsEvent
DateTime
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(qualifier = exact);
(point = start)
2011-05-31
DateTime
(encoding = w3cdtf);
(qualifier = exact);
(point = end)
2013-05-30
Type
Embargo
Detail
Access to this PDF has been restricted at the author's request. It will be publicly available after May 30th, 2013.
Copyright
Status
Copyright protected
Availability
Status
Open
Reason
Permission or license
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