Are Dominant CEOs the Saviors of Troubled Firms?

This study examines the appointment of dominant CEOs for troubled (i.e., poorly performing) firms and its implications for firm strategy and performance. With a sample of firms from the U.S. computer hardware and software industries that experienced CEO succession during the period 1994–2001, we found that troubled firms were more likely to appoint dominant CEOs than non-troubled firms. Newly appointed dominant CEOs undertook less strategic...