Work

CEO Turnovers and Disruptions in Customer–Supplier Relationships

Year: 2017

Type: article

Abstract: Events that disrupt customer-supplier relationships pose a source of risk for suppliers that depend on a customer for a large portion of their revenues. We identify the replacement of a customer’s CEO as a disruptive event that results in suppliers losing substantial sales to the customer following the turnover. This loss is greater when incumbents are more likely to be entrenched. Suppliers also experience declines in overall financial performance following this loss in sales as well as negative abnormal stock returns to announcements of customer CEO departures. Our findings suggest that these disruptions largely stem from successors divesting assets.

Source: Journal of Financial and Quantitative Analysis

DOI: 10.1017/s0022109017000965

Authors: Vincent J. Intintoli, Matthew Serfling, Sarah Shaikh

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3124375010

FWCI: 10.63

Cites: 86

Cited by: 93

Related to: 10