New Firm Performance and the Replacement of Founders

Jing Chen, Peter Thompson

    Research output: Contribution to conferencePaperResearchpeer-review


    We construct a simple model of founder turnover in which there may be mismatches between the quality of a startup and the ability of the founder. When high-ability founders establish poor-quality businesses, they either choose to close the business or hire a less able CEO. In contrast, low-ability founders with highquality businesses hire a more able CEO. We derive implications of the model for the relationship between firm performance and founder turnover. These predictions are tested using a large sample of Danish startups.
    Original languageEnglish
    Publication date2012
    Number of pages37
    Publication statusPublished - 2012
    EventThe 12th Annual Roundtable for Engineering Entrepreneurship Research - Georgia Institute of Technology, Atlanta, GA, Atlanta, United States
    Duration: 9 Nov 201211 Nov 2012
    Conference number: 12


    ConferenceThe 12th Annual Roundtable for Engineering Entrepreneurship Research
    LocationGeorgia Institute of Technology, Atlanta, GA
    Country/TerritoryUnited States
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