CEO Turnover and Foreign Market Participation

Show full item record

Title: CEO Turnover and Foreign Market Participation
Author: Blonigen, Bruce A. (Bruce Aloysius); Wooster, Rossitza B. (Rossitza Bouneva), 1971-
Abstract: Anecdotal evidence suggests that new CEOs with foreign backgrounds direct their firms to become more international in their operations. We examine this hypothesis formally using data on U.S. S&P-500 manufacturing firms from1992 through 1997 and biographical information on CEO's birth and education locations that allow us to identify changes from U.S.- to foreign-connected CEOs. Robust to a variety of specifications, we find that a U.S. firm's switch from a U.S. to a foreign CEO leads to substantial increases in the firm's proportion of its foreign assets and foreign affiliate sales. In fact, our preferred specification indicates that foreign asset and affiliate sales proportions increase 25 and 40%, respectively, for the five years after there is CEO turnover to one with a foreign background. This is in contrast to U.S.-to-U.S. CEO switches in our sample that show no evidence of changes in a firms' foreign market participation. These large effects contrast with previous literature that finds little evidence for changes in firm performance with CEO turnover.
URI: http://hdl.handle.net/1794/133
Date: 2003-03


Files in this item

Files Size Format View
UO-2003-24_Blonigen_Wooster_CEO_Turnover.pdf..pdf 236.7Kb PDF View/Open

This item appears in the following Collection(s)

Show full item record