Hold the chair: the link between short-term exposure and the managerial change in an emerging market during the pandemic

Abstract

Purpose

This paper aims to study the effect of short-term firm-level exposure on managerial change during the COVID-19 pandemic in the Chinese economy. Such a link is not explored in the existing COVID-19 and resource-based theory (RBT) literature.

Design/methodology/approach

The logit regression model is utilized to examine the effect of short-term exposure on the probability of managerial change in the Chinese economy. Logit models based on coarsened exact matching (CEM) are also used in the robustness checks part of the study. The results are robust to different specifications.

Findings

The obtained findings show that short-term exposure has a significantly positive effect on the probability of managerial change during the pandemic.

Research limitations/implications

Under the RBT approach, this study sheds new light on the relationship between short-term financial exposure and managerial change under uncertainty during the pandemic.

Practical implications

C-Suite executives need to be prepared for short-term sudden shocks. According to the findings of the study, the relationship between short-term sudden shocks and short-term financial exposure is a factor that C-suite executives should pay attention to.

Social implications

Short-term sudden shocks can support managerial change, pushing society into uncertainty and negatively affecting the private sector. In this context, it has a structure that can amplify uncertainty.

Originality/value

In the existing COVID-19 literature, the effect of short-term exposure on the probability of managerial change is under researched, especially in the emerging markets-based RBT and COVID-19 literature. The present study offers an insight into the link between short-term exposure and the probability of managerial change during the pandemic.

Citation

Doruk, Ö.T. (2025), "Hold the chair: the link between short-term exposure and the managerial change in an emerging market during the pandemic", Leadership & Organization Development Journal, Vol. 46 No. 1, pp. 166-183. https://doi.org/10.1108/LODJ-12-2023-0668