Key Executive Succession and Stockholder Wealth: The Influence of Successorys Origin, Position, and Age

Wallace N. Davidson, Dan L. Worrell, Tsz Wan Cheng

Research output: Journal article publicationJournal articleAcademic researchpeer-review

63 Citations (Scopus)


This study uses event time methodology to test the reaction of the stock market to announcements of the appointments of 367 key executive officers in a sample of 1986 Fortune 500 companies. We found significant, positive market reactions for the total top management sample. In addition, we found differences for successor's origin, position, and age at the time of appointment. The results highlight the importance of specifying the conditions under which succession will have its different effects.
Original languageEnglish
Pages (from-to)647-664
Number of pages18
JournalJournal of Management
Issue number3
Publication statusPublished - 1 Jan 1990
Externally publishedYes

ASJC Scopus subject areas

  • Finance
  • Strategy and Management

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