Research Repository

See what's under the surface

Information asymmetries in the hiring process and the risk of new leader dismissal: insights from English premier league soccer organizations

Desai, Malay N.; Lockett, Andrew; Paton, David

Authors

Malay N. Desai Malay.desai@nottingham.ac.uk

Andrew Lockett

Abstract

Why are some new leaders dismissed quicker than others? Adopting agency theory logic we examine how different succession contexts shape boards’ information asymmetries about a potential candidate’s competencies in the hiring process, which influences the propensity of making poor hiring decisions and hence the risk of new leader dismissal. Employing duration analysis on a sample of 164 newly appointed leaders in the English premier league (1996 –2014), we find that the risk of new leader dismissal is: (i) greater when the predecessor leader’s exit was initiated by them rather than by the board; (ii) greater when following a longer tenured predecessor; and (iii) lower for outside successions as compared to inside successions.

Journal Article Type Article
Publication Date Jan 17, 2018
Journal British Journal of Management
Print ISSN 1045-3172
Electronic ISSN 1467-8551
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 29
Issue 1
DOI https://doi.org/10.1111/1467-8551.12210
Keywords New leader dismissal, Leader succession, Agency theory, Asymmetric information
New leader dismissal, leader succession, agency theory, asymmetric information
Publisher URL http://onlinelibrary.wiley.com/doi/10.1111/1467-8551.12210/abstract
Copyright Statement Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc/4.0
Additional Information This is the peer reviewed version of the following article: Desai, M.N., Lockett, A. and Paton, D. (2017), Information Asymmetries in the Hiring Process and the Risk of New Leader Dismissal: Insights from English Premier League Soccer Organizations. Brit J Manage., which has been published in final form at doi:10.1111/1467-8551.12210. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Files

Information asymmetries in the hiring process and the risk of new leader dismissal.pdf (706 Kb)
PDF

Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc/4.0



You might also like


Downloadable Citations