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Unmet expectations: How chief executive officer dismissal affects corporate reputation
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DOI：10.1002/smj.70104.png)
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Abstract
En 中文
CEO dismissal is a high-stakes governance decision, yet its implications for corporate reputations remain underexplored. We develop theory explaining how dismissals damage corporate reputation through perceptual processes that arise from features of and reactions to the practice itself, distinct from effects attributable to dismissal's (much studied) economic and strategic consequences. Drawing on expectancy violation theory, we argue that dismissals become salient and generate negative reactions because they deviate from the preferred norm of planned succession and also highlight firm-level problems, and these factors prompt reputational reassessment. The findings support this prediction: dismissals significantly damage corporate reputation even after controlling for financial performance. This damage intensifies when dismissed CEOs have won awards, received extensive media coverage, or led high-performing firms.
Keywords:
CEO dismissal
CEO/top management
corporate governance
corporate reputation
expectancy violation
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