Outsider vs insider: Does firm governance matter?

• Authors: Abdullahi Yahya Uthman , Ishak Rokiah , Sawandi Norfaiezah
• Languages of publication: EN

Abstracts

EN

As CEO turnover occurs, the company may select an insider or outsider as a successor. This study attempts to ascertain whether firm performance, female directors, board religiosity and blockholder ownership influence the decision to appoint an internal or external candidate. Results from logistic regression analysis on 72 succession events over a five-year period (2011 to 2015) reveal that firms which are controlled by blockholders and those with females on their boards tend to select an outsider as the successor. Meanwhile, firms that have Muslims on their boards are more likely to select insiders as successors. This study implies that poor firm performance does not necessarily lead to outside CEO selection choice. On the overall, the findings indicate that blockholder ownership and gender diversity in the boardroom matter in the Nigerian corporate landscape.

Keywords

EN

Blockholder; CEO selection; performance; gender diversity; religiosity

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Prague Development Center, Czech Republic
• Journal: Business and Economic Horizons
• Year: 2018
• Volume: Volume 14
• Issue: Issue 3
• Pages: 689-699

Dates

published

2018-06-14

Contributors

author

Abdullahi Yahya Uthman

• Tunku Puteri Intan Safinaz School of Accountancy, College of Business, Universiti Utara Malaysia

author

Ishak Rokiah

• Tunku Puteri Intan Safinaz School of Accountancy, College of Business, Universiti Utara Malaysia

author

Sawandi Norfaiezah

• Tunku Puteri Intan Safinaz School of Accountancy, College of Business, Universiti Utara Malaysia