Internal vs. External CEOs

Internal vs. External CEOs

By
David F. Larcker, Brian Tayan
CGRI Research Spotlight Series. Corporate Governance Research Initiative, October
2016

This Research Spotlight provides a summary of the academic literature on internal and external CEOs. It reviews the evidence of:

  • Trends in hiring external CEOs
  • Operating condition of companies that hire internal and external CEOs
  • Stock market reaction to hiring external CEOs
  • Relative performance of internal and external CEOs

This Research Spotlight expands upon issues introduced in the Quick Guide “CEO Succession Planning.”