Abstract

Prior research has examined the objective determinants (Fredrickson et al., 1988) of founder-CEO dismissal including firm size and growth (Boeker & Karichalil, 2002); triggering events (Wasserman, 2001); and CEO vs. VC power (Fiet et al., 1997; Boeker, 1998). Scholars have also analyzed the sociopolitical aspects of CEO dismissal, such as VCs’ dismissal criteria (Bruton, 1998; 2000). However, there have been no studies to date focusing on the subjective determinants of founder-CEO dismissal. Our paper seeks to fill this gap by investigating whether or not some VCs are more likely than others to pull the trigger and replace the founder-CEO, and if so, what VC characteristics are associated with this conduct.

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