Examining CEO Succession and the Role of Heuristics in Early-Stage CEO Evaluation

Strategic Management Journal, Forthcoming

42 Pages Posted: 17 Apr 2012

See all articles by Scott D. Graffin

Scott D. Graffin

University of Georgia - Department of Management

Steven Boivie

Texas A&M University - Department of Management

Mason A. Carpenter

University of Wisconsin-Madison (Deceased)

Date Written: April 16, 2012

Abstract

This study develops and tests predictions regarding factors that influence early-stage CEO evaluation. We suggest that contextual elements of the CEO succession process will influence the heuristics directors employ to aid in their early evaluation of a CEO because traditional performance metrics, such as firm performance, are less diagnostic of CEO quality in the first years of their tenure. Broad empirical support for our theoretical arguments is shown in a sample of Fortune 1000 firms.

Keywords: CEO succession, Evaluative uncertainty, decision making heuristics, CEO compensation, star CEOs

Suggested Citation

Graffin, Scott D. and Boivie, Steven and Carpenter, Mason A., Examining CEO Succession and the Role of Heuristics in Early-Stage CEO Evaluation (April 16, 2012). Strategic Management Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2040912

Scott D. Graffin

University of Georgia - Department of Management ( email )

United States

Steven Boivie (Contact Author)

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States

Mason A. Carpenter

University of Wisconsin-Madison (Deceased)

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