A Study on the Relationship between CEO Succession Based on Big Data Information Processing Technology and Corporate Performance

Abstract

The recognition of data elements as a crucial production factor in China in 2019 highlights the rising importance of leveraging data assets. The pivotal role of big data information processing technology in economic and financial realms cannot be understated. CEO succession is a pivotal event that heavily influences a company’s performance. However, past research on the correlation between CEO succession and corporate performance has yielded inconclusive results. This study addresses this gap by employing advanced analytical models, namely propensity score matching and difference-in-differences techniques, grounded in the realm of big data information processing technology to explore the intricate relationship between CEO succession and corporate performance. By analyzing data from A-share listed companies spanning from 2014 to 2021, noteworthy insights have emerged. Firstly, a notable negative correlation between CEO succession and corporate performance has been observed, affirming the notion of a “disruptive effect” associated with CEO transitions, leading to a decline in corporate performance. Furthermore, the study sheds light on the multi-faceted nature of factors influencing corporate performance, cautioning against attributing poor performance solely to the CEO. Consequently, enhancing corporate performance demands a nuanced approach that goes beyond mere CEO replacements, emphasizing a holistic strategy encompassing various avenues for improvement.