Managerial Succession and Corporate Effectiveness. Review of Research Trends
Managerial Succession and Corporate Effectiveness. Review of Research Trends

Summary/Abstract: The main goal of this article is to analyze stocks price reaction and company`sperformance to changes in management authorities. Analysis of major internationaland Polish trends have been discussed. Depending on the location we may observediversities in management policy and the different political commitment of managers.As things are, the rotation of managerial positions is not directly related to the economicsituation of the company. In addition, supervisory board`s role is significantlydifferent. It could control or only advise the managers. The biggest influence on stocksprices or effectiveness of the company has the management board dismiss reason. Wecannot observe reactions in share prices if the management board tenure is endingor its voluntarily dismiss. However, in the event of the forced dismiss the share pricereaction depends on the company situation. The shares rise or fall, if it was a surprise.It is important to stress that we can find a number of gaps in conducted research. Theresearch related to demographic, cultural or religious characteristics versus company`smanagement efficiency are insufficient.

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