THE IMPACTS OF CEOS WINNING AWARDS ON FIRM STRATEGIC CHANGE Proceedings Paper

Ermilina, V, Nair, A, Zhang, J et al. (2022). THE IMPACTS OF CEOS WINNING AWARDS ON FIRM STRATEGIC CHANGE . BEST PAPERS PROCEEDINGS - FIFTY-FIFTH ANNUAL MEETING OF THE ACADEMY OF MANAGEMENT, 2022(1), 10.5465/AMBPP.2022.116

cited authors

  • Ermilina, V; Nair, A; Zhang, J; Fainshmidt, S; Salaiz, A

authors

abstract

  • Research on award-winning CEOs have led to two contradictory assertions: some scholars argue that CEOs who win awards may engage in strategic change and risk-taking behavior, while others argue that such CEOs become risk-averse and are less likely to engage in strategic change. Using prospect theory (PT) and behavioral theory of the firm (BTOF), we examine the effects of CEOs winning awards on firm strategic change. Using S&P 500 data from 2009 to 2021, we find that award-winning CEOs are less likely to engage in strategic change; moreover, performance below or above firm aspirations has no impact on subsequent strategic behavior.

publication date

  • January 1, 2022

published in

Digital Object Identifier (DOI)

volume

  • 2022

issue

  • 1