Insider vs. outsider CEO and firm performance: Evidence from the Covid-19 pandemic

Title: Insider vs. outsider CEO and firm performance: Evidence from the Covid-19 pandemic
Creator: Haque, Md Reiazul; Choi, Bobae; Lee, Doowon; Wright, Sue
Relation: Finance Research Letters Vol. 47, Issue A, no. 102609
Publisher Link: http://dx.doi.org/10.1016/j.frl.2021.102609
Publisher: Elsevier
Resource Type: journal article
Date: 2022
Description: We examine the connection between firm performance and a CEO's previous position (inside or outside the firm), using Covid-19 as an exogenous shock. Firms led by insider CEOs outperformed those led by outsider CEOs in terms of return on assets during the Covid-19 crisis period in 2020, but there was no performance differential in the period before the crisis. Additional tests indicate that outperformance under insider CEOs is observed in firms holding more cash and firms with a higher proportion of internally promoted non-CEO executives. These findings have important implications for boards of directors making CEO appointments.
Subject: insider CEO; outsider CEO; firm performance; COVID-19; SDG 3; Sustainable Development Goals
Identifier: http://hdl.handle.net/1959.13/1464778
Identifier: uon:47105
Identifier: ISSN:1544-6123
Language: eng
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