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Volume 14
Issue 3
Online publication date 2018-06-14
Title Outsider vs insider: Does firm governance matter?
Author Yahya Uthman Abdullahi, Rokiah Ishak, Norfaiezah Sawandi
As CEO turnover occurs, the company may select an insider or outsider as a successor. This study attempts to ascertain whether firm performance, female directors, board religiosity and blockholder ownership influence the decision to appoint an internal or external candidate. Results from logistic regression analysis on 72 succession events over a five-year period (2011 to 2015) reveal that firms which are controlled by blockholders and those with females on their boards tend to select an outsider as the successor. Meanwhile, firms that have Muslims on their boards are more likely to select insiders as successors. This study implies that poor firm performance does not necessarily lead to outside CEO selection choice. On the overall, the findings indicate that blockholder ownership and gender diversity in the boardroom matter in the Nigerian corporate landscape.
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Keywords Blockholder, CEO selection, performance, gender diversity, religiosity
Pages 689-699
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