Are founder-CEOs resilient to crises? The impact of founder-CEO succession on new firm survival
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- Yuji Honjo
- Chuo University, Japan
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- Masatoshi Kato
- Kwansei Gakuin University, Japan
Description
<jats:p> This article explores whether new firms managed by founder-chief executive officers (CEOs) are more likely to survive than those managed by successor-CEOs in times of crisis. Drawing on the concept of ‘resilience’ to adversity, we argue that founder-CEOs increase the likelihood of new firm survival, especially in times of crisis. Using a sample of Japanese firms founded during the 2003–2010 period, we examine the impact of founder-CEO succession on new firm survival. The analysis shows that new firms managed by founder-CEOs are less likely to liquidate than those managed by successor-CEOs, especially during the 2008–2009 financial crisis. This suggests that founder-CEOs are more resilient to crises than successor-CEOs. In contrast, new firms managed by successor-CEOs are more likely to exit via merger than those managed by founder-CEOs, regardless of macroeconomic conditions. These findings are robust after controlling for the endogeneity of CEO succession. </jats:p>
Journal
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- International Small Business Journal: Researching Entrepreneurship
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International Small Business Journal: Researching Entrepreneurship 40 (2), 205-235, 2021-12-11
SAGE Publications
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Details 詳細情報について
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- CRID
- 1360576118781785216
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- ISSN
- 17412870
- 02662426
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- Data Source
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- Crossref
- KAKEN
- OpenAIRE