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- W2781556842 abstract "Boards of directors often attempt to foster corporate entrepreneurship by replacing a firmʼs chief executive officer (CEO). Compelling theoretical arguments and anecdotal evidence suggest that when firm performance has suffered, a new CEO is best suited to lead the firmʼs creative endeavors. On the other hand, among firms that retain their existing CEO after a decline in performance, manipulating the CEOʼs compensation package is a common governance practice used by boards to encourage innovation. In these cases, some have argued that increasing the CEOʼs pay will encourage corporate entrepreneurship, because the CEO has been compensated for assuming additional risk. Counter to these propositions, this study develops theoretical arguments that a firmʼs existing CEO is better equipped to foster corporate entrepreneurship and that this probability increases when the CEOʼs cash compensation is decreased. Results from a sample of 100 single-product manufacturing firms suggest firms that retain their current CEO and decrease the CEOʼs cash compensation are most likely to engage in corporate entrepreneurship. Implications that this research has for corporate entrepreneurship, corporate governance, and firm performance are discussed." @default.
- W2781556842 created "2018-01-12" @default.
- W2781556842 creator A5009808411 @default.
- W2781556842 date "2002-03-01" @default.
- W2781556842 modified "2023-09-25" @default.
- W2781556842 title "Someone old or someone new? The effects of ceo change on corporate entrepreneurship" @default.
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- W2781556842 doi "https://doi.org/10.1108/neje-05-02-2002-b005" @default.
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