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Abstract Focusing on CEO successor’s age and integrating organizational behavior theory with agent theory and prospect theory, the study investigated the factors that affect CEO’s selection and the mechanism underlying the process.Additionally, we examined corporate operational performance and strategic innovation following CEO succession and how it related to CEO successor’s age. Taking the Chinese firms where CEO succession occurred between 1998 and 2011 as samples, and by usinging IV regression model, we found CEO successor’s age changes with board age in the same direction; the gap between CEO successor’s age and that of board gives rise to the increaseing likelihood of directors’ leaving and deteriorate firms performance after succession.
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Received: 08 October 2014
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2015, Vol. 12 
