"Incumbent CEO-candidate Social Ties, CEO Selection and Post-succession Outcome: Evidence from Japan"

This study examines the impact of incumbent CEO-new CEO candidate social ties on CEO selection and post-succession performance, using all candidate data of 4,400 CEO successions in Japan, where outsider CEOs are rarely selected. We found that a CEO successor with social ties is more likely to be appointed and that firm performance under a successor with social ties is higher than under a successor without social ties. We found these tendencies...