Does the Risk of Managerial Entrenchment Affect CEO Dismissal in Family SMEs?

  •  Jonathan Bauweraerts    
  •  Olivier Colot    


The aim of this study is to identify the determinants of CEO dismissal in Belgian family SMEs. Based on a survey launched to 2.000 SMEs, 102 CEO dismissals were identified as well as other relevant features related to the family character of the firm. Logistic regressions have been used to explain CEO dismissal by several variables related to governance. The results indicate a significant influence of CEO attributes such as age and tenure on CEO dismissal. Also, firm age has been shown to enhance CEO dismissal. The other governance variables do not lead to significant findings. Taken together, these results suggest that specific risks of managerial entrenchment can explain CEO turnover in the context of family SMEs.

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