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| An Empirical Study on Determinants of Strategic Change from Perspective of New CEO |
| LIU Xin，XUE Youzhi |
| Nankai University, TianJin, China |
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Abstract Focusing on the CEO turnover as the starting point of research, the study analyzes the root and motive of a new CEO to initiate strategic changes on the basis of new CEO’s unique characteristics and the threat facing the CEO on the early stage of his or her tenure. With the various theoretical background like CEO power, agency theory, and organization theory, the study regards the CEO’s characteristics and his or her fear to be dismissed by board soon after succession as one of most integral determinants of strategic change. Using the data of
China’s listed companies from 2004 to 2006, with the method of multiple moderating regression and anova , the study finds out that regardless of the reason of CEO succession or the prior performance, CEO succession is positively associated to strategic change. Additionally, the study claims that the focal firm’s focal performance and predecessor’s tenure negatively moderate the effect of CEO succession on strategic change.
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Received: 27 March 2013
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2013, Vol. 10 
