Timing the Transition: Strategic Restructuring as a Temporal Anchor for CEO Succession Examining the Impact of Timing on Internal and External CEO Transitions
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2025-06-19
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en
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This study explores whether the aligning of a CEO transition with a strategic restructuring enhances firm performance. The study builds upon organizational entrainment theory by examining whether internally generated temporal anchors, such as restructuring events, can serve as effective moments for leadership transitions. Drawing on a sample of 8,956 CEO succession events in publicly listed European firms between 2009 and 2023, the research investigates the effect of timing in CEO transitions and considers the moderating role of CEO origin (internal vs. external). Using a linear regression analysis, the study finds no significant evidence that aligning CEO transitions with a restructuring leads to improved operational performance, nor that external CEOs benefit more from such alignment. The study suggests that the symbolic clarity and shared recognition of external temporal markers may be necessary for entrainment effects to materialize. It contributes to CEO succession literature by extending entrainment theory to internally timed events and provides practical insights for boards regarding the strategic planning of leadership transitions.
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Faculteit der Managementwetenschappen