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

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 an...

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Main Authors: Desai, Malay N., Lockett, Andrew, Paton, David
Format: Article
Published: Wiley 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/39090/
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author Desai, Malay N.
Lockett, Andrew
Paton, David
author_facet Desai, Malay N.
Lockett, Andrew
Paton, David
author_sort Desai, Malay N.
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-390902020-05-04T19:27:03Z https://eprints.nottingham.ac.uk/39090/ 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 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. Wiley 2018-01-17 Article PeerReviewed Desai, Malay N., Lockett, Andrew and Paton, David (2018) Information asymmetries in the hiring process and the risk of new leader dismissal: insights from English premier league soccer organizations. British Journal of Management, 29 (1). pp. 26-42. ISSN 1467-8551 New leader dismissal Leader succession Agency theory Asymmetric information New leader dismissal leader succession agency theory asymmetric information http://onlinelibrary.wiley.com/doi/10.1111/1467-8551.12210/abstract doi:10.1111/1467-8551.12210 doi:10.1111/1467-8551.12210
spellingShingle New leader dismissal
Leader succession
Agency theory
Asymmetric information New leader dismissal
leader succession
agency theory
asymmetric information
Desai, Malay N.
Lockett, Andrew
Paton, David
Information asymmetries in the hiring process and the risk of new leader dismissal: insights from English premier league soccer organizations
title Information asymmetries in the hiring process and the risk of new leader dismissal: insights from English premier league soccer organizations
title_full Information asymmetries in the hiring process and the risk of new leader dismissal: insights from English premier league soccer organizations
title_fullStr Information asymmetries in the hiring process and the risk of new leader dismissal: insights from English premier league soccer organizations
title_full_unstemmed Information asymmetries in the hiring process and the risk of new leader dismissal: insights from English premier league soccer organizations
title_short Information asymmetries in the hiring process and the risk of new leader dismissal: insights from English premier league soccer organizations
title_sort information asymmetries in the hiring process and the risk of new leader dismissal: insights from english premier league soccer organizations
topic New leader dismissal
Leader succession
Agency theory
Asymmetric information New leader dismissal
leader succession
agency theory
asymmetric information
url https://eprints.nottingham.ac.uk/39090/
https://eprints.nottingham.ac.uk/39090/
https://eprints.nottingham.ac.uk/39090/