CEO Succession Planning
With the Lunch Seminar series, the Department of Finance is bringing eminent and up-and-coming researchers from around the world to Luxembourg.
Abstract:
We document that CEO succession plans reduce CEO turnover costs and increase the speed of learning about CEO successors when these are internally promoted, and do not negatively affect firm performance. We incorporate these findings in a dynamic model featuring a board of directors learning over time about CEO ability and taking firing and plan adoption decisions. To rationalize the adoption rate, the model needs a large agency cost. The model also predicts that eliminating such cost would greatly increase shareholder value and that the main channel driving adoptions is the cost saving rather than the learning channel.
About Prof. Francesco Celentano:
Prof. Francesco Celentano is an Assistant Professor of Finance at HEC Lausanne and Faculty Member at the Swiss Finance Institute. He received his Ph.D. in Economics and Finance from the University of Wisconsin-Madison in 2021. His research interests are in corporate finance, corporate governance, and macroeconomics.
Language: English
This is a free seminar. Registration is mandatory.
The seminar will be held in person.
Cold lunches are provided to registered participants.
Supported by the Luxembourg National Research Fund (FNR) 17984041