Speaker: Professor Wei Shen
Title: IS THERE SOCIAL DISCRIMINATION AGAINST DEMOGRAPHIC MINORITY CEOS? THE IMPACT OF DIFFERENCE BETWEEN A NEW CEO AND INCUMBENT DIRECTORS IN GENDER AND RACE ON NEW CEO TURNOVER
Bio: Wei Shen is an Associate Professor of Strategic Management and a Co-Director of the China EMBA Program at the W. P. Carey School of Business, Arizona State University. He received his Ph.D. in strategic management from Texas A&M University. Before joining ASU, he served on the faculty of Rutgers Business School and the Warrington College of Business Administration at the University of Florida. He was a senior research fellow at the SKOLKOVO Institute for Emerging Market Studies in Beijing from 2009 to 2010.
His research interests include strategic leadership, corporate governance, organizational search, and research methodology. His works have been published in the top-tier management journals, such as the Academy of Management Journal, Academy of Management Review, Administrative Science Quarterly, and Strategic Management Journal, among others. He has served on the editorial boards of the Academy of Management Journal, Academy of Management Review, and Strategic Management Journal.
Abstract: We develop a theory of intergroup bias to predict that difference between a new CEO and incumbent directors in gender and race increases the likelihood of new CEO turnover. Moreover, because prior direct contact helps reduce intergroup bias based on demographic difference, we propose that a new CEO's organizational origin, prior board ties and prior social ties with incumbent directors moderate the positive impact of difference in gender and race on new CEO turnover. Using data on 394 CEOs appointed between 1994 and 2004, we find empirical support for the above theoretical predictions. This study advances a new social psychological perspective on the causes of new CEO turnover. It also has important implications for research on corporate governance and social discrimination in the corporate elite.