We examine the dynamics of firms' internal succession methods and find that horse race successions are common among the largest U.S. firms. Although heir and horse race CEO candidates are of similar quality, the consequences of these two succession methods differ significantly. We show that...

We examine the roles board of directors can play in CEO succession planning, by asking the questions, whom should the firm choose as replacement CEOs in unexpected CEO turnover, and what is the impact of this decision on shareholder wealth? More specifically, we build on the director expertise...