Browsing by Author "Kerlin, Julius"
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- Internal vs. external executive board composition and firm performance during crisis situationsPublication . Kerlin, Julius; d'Arcy, AnneThis thesis investigates the relationship between leadership origin, board composition, and firm performance in German listed companies, focusing on the pre-crisis year 2019 and the Covid-19 crisis year 2020. Using a balanced quarterly panel of 122 firms, the study examines whether internally appointed CEOs and executives outperform external appointees and whether such effects are moderated by liquidity reserves, gender diversity, and ownership structure. Performance is measured via industry-demeaned Return on Assets (ROA) and Tobin’s Q, with controls for firm, industry, and time effects. The findings show no consistent performance premium for internally appointed CEOs in Germany, in contrast to evidence from U.S. one-tier systems. However, a higher proportion of internally promoted executives on the management board is positively associated with ROA across both years, suggesting that collective internal continuity matters more than CEO origin alone. This effect does not strengthen during the crisis, and high cash holdings, female representation, and the strongest investor presence show limited or context-specific performance impacts. These results underscore the role of institutional context in shaping leadership-performance dynamics. In Germany’s stakeholder-oriented, two-tier governance system, the advantages of internal leadership appear steady over time rather than crisis-dependent, with implications for succession planning and governance strategy.