Organization and Strategy Seminar（2019-09）

Topic: Could There Be a Socioemotional Bond? An Evolutionary Perspective of Professional CEOs’ Risk of Dismissal in Family-Controlled Firms

Speaker: Wei Shen,Arizona State University

Time: Tuesday, 2 July, 10:00-11:30 am

Location: Room 109 , Guanghua Building 2

Abstract:

This study departs from the conventional agency theory explanation of CEO dismissal and examines the dynamics of the relationship between the controlling families and the professional CEOs. Taking an evolutionary perspective, we propose that a socioemotional bond, defined as a strong relationship based on trust, respect and affect, can be formed between the controlling families and the professional CEOs over a substantive period of time or through transformational events. This socioemotional bond will reduce the professional CEOs’ risk of dismissal and weaken its association with firm financial performance. Using data from a sample of family-controlled firms in Taiwan from 1999 to 2013, we find empirical evidence consistent with our theoretical predictions.In addition to introducing an evolutionary perspective to advance the understanding of the dynamic relationship between controlling families and professional CEOs in family-controlled firms,our study has important implications for corporate governance research on the principal-agent relationship that has been dominated by economic and political perspectives.

Introduction:

Wei Shen is a professor and Associate Dean for China programs at the W. P. Carey School of Business. In his role, he oversees all aspects of the China programs, which include the EMBA and DBA programs designed for high-level executives and decision makers. Before joining ASU in 2010, he was an associate professor at the University of Florida.

Professor Shen is a noted researcher on topics including strategic leadership, corporate governance, organizational search, and research methodology. His research has appeared in the top-tier journals of his field, including the Academy of Management Journal, Academy of Management Review, Administrative Science Quarterly, and Strategic Management Journal.

He has served on the editorial boards of several premier journals, including the Academy of Management Journal, Academy of Management Review, Journal of Management and Governance, Management and Organization Review, and Strategic Management Journal.

//isearch.asu.edu/profile/1588617

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