Factors influencing founder-CEO succession: The examples of CIS and CEE countries

Abstract

The paper is dedicated to the problem of management succession from owner to CEO. The main aim of the paper was to analyze the impact of various factors on the succession process that are noted in the countries with transition economies including institutional influence on the succession process. The authors tested several hypotheses considering the influence of the illegal payments and perception of the legal system by the decision maker on the succession. The hypothesis considering the influence of the audit on the succession decision was confirmed. The analysis was applied to the data collected by The World Bank Group in 2005. The sample included data about 4701 enterprises from 27 countries of CEE and CIS.