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Determinants of CEO Succession Decisions in Family Firms

This paper examines one of the most consequential decisions in family firms: CEO succession. In founder-led firms, succession choices are particularly critical, as they determine whether the firm remains under family control and, if so, in what form. 

We outline three main options for founder CEOs upon retirement: selling the firm, appointing a family successor, or retaining ownership while appointing a professional (non-family) CEO. While prior research has largely focused on the outcomes of these succession choices, this paper turns attention to their determinants. 

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