Insider or outsider? The separate and joint effects of firm performance and diversification on CEO recruitment

This study aims to investigate the effects of firm performance and diversification on the insider/outsider CEO hiring. Using a sample of 2204 CEO succession events occurred between 1979 and 2014 in the U.S., we find that the effect of firm performance on the likelihood of hiring insider CEOs is positive and significant, which is consistent with Datta and Guthrie (1994). Moreover, the impact of the level of firm diversification on the likelihood...