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Eastern Academy of Management 2018 Annual Meeting

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THE HALO EFFECT GENERATED BY THE INVOLUNTARY TURNOVER OF PREDECESSOR CEOS AND ITS EFFECT ON THE TENURE OF SUCCESSOR CEOS

This paper examines the interconnection between the involuntary terminations of CEOs, the inverse halo effect caused by this termination on successor CEOs, and the resulting truncated tenure of successor CEOs if the firm is under performing. Specifically, the study expects to find that a successor CEO is subject to a truncated tenure when following a predecessor subject to an involuntary turnover. The study further attributes this phenomenon to a reverse halo effect.

Jonathan Sales
Bentley University
United States

Jessica Magaldi
Pace University
United States

 

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