This Research Spotlight provides a summary of the academic literature on internal and external CEOs. It reviews the evidence of: Trends in hiring external CEOs, operating condition of companies that hire internal and external CEOs, stock market reaction to hiring external CEOs, and relative performance of internal and external CEOs. This Research Spotlight expands upon issues introduced in the Quick Guide “CEO Succession Planning.”
Copyright held by David F. Larcker and Brian Tayan. Further inquiries about reproduction and use should be directed to the Corporate Governance Research Initiative.
