CEO turnover and company performance: Sensitivity and empirical estimates

Solving organizational effectiveness problems is largely dependent on the quality of the corporate governance system. One of its main aspects is characteristics and actions of a firm’s CEO. The paper evaluates how CEO turnover affects a company’s performance. Having conducted a critical analysis of...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Orekhova S.V., Kudin L.Sh., Kupera A.V.
Formato:	article
Lenguaje:	RU
Publicado:	Ural State University of Economics 2019
Materias:	corporate governance CEO company performance CEO turnover public company Russian company Business HF5001-6182 Finance HG1-9999
Acceso en línea:	https://doaj.org/article/7750219f534d44b5a8938e877cbfc753
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:7750219f534d44b5a8938e877cbfc753
record_format	dspace
spelling	oai:doaj.org-article:7750219f534d44b5a8938e877cbfc7532021-12-02T01:50:07ZCEO turnover and company performance: Sensitivity and empirical estimates10.29141/2218-5003-2019-10-4-12218-5003https://doaj.org/article/7750219f534d44b5a8938e877cbfc7532019-09-01T00:00:00Zhttp://upravlenets.usue.ru/images/80/1.pdfhttps://doaj.org/toc/2218-5003Solving organizational effectiveness problems is largely dependent on the quality of the corporate governance system. One of its main aspects is characteristics and actions of a firm’s CEO. The paper evaluates how CEO turnover affects a company’s performance. Having conducted a critical analysis of the current approaches describing its role and impact on business success, the authors substantiate the research methodological domain: a synthesis of theories of neoinstitutionalism, organization and strategic management. The research method is panel regression with fixed effects. The information base includes the data from 54,341 Russian joint stock companies for the period 2006–2017. A number of variations of the basic model allowed us to establish a statistically significant negative relationship between the change in revenue and CEO turnover in the short term. The obtained results have confirmed the provisions of the theory of the firm regarding the necessity to adapt a CEO to the company’s external and internal environment. The paper shows that foreign CEOs and owners (shareholders) are faster to adapt to a new position, which accelerates the growth of business performance indicators. At the same time, the research demonstrates that a decline in a company’s performance has a short-term effect. This means that boards of directors should not take hasty decisions to switch the CEO after a short-term poor performance.Orekhova S.V.Kudin L.Sh.Kupera A.V.Ural State University of Economicsarticlecorporate governanceCEOcompany performanceCEO turnoverpublic companyRussian companyBusinessHF5001-6182FinanceHG1-9999RUУправленец, Vol 10, Iss 4, Pp 2-13 (2019)
institution	DOAJ
collection	DOAJ
language	RU
topic	corporate governance CEO company performance CEO turnover public company Russian company Business HF5001-6182 Finance HG1-9999
spellingShingle	corporate governance CEO company performance CEO turnover public company Russian company Business HF5001-6182 Finance HG1-9999 Orekhova S.V. Kudin L.Sh. Kupera A.V. CEO turnover and company performance: Sensitivity and empirical estimates
description	Solving organizational effectiveness problems is largely dependent on the quality of the corporate governance system. One of its main aspects is characteristics and actions of a firm’s CEO. The paper evaluates how CEO turnover affects a company’s performance. Having conducted a critical analysis of the current approaches describing its role and impact on business success, the authors substantiate the research methodological domain: a synthesis of theories of neoinstitutionalism, organization and strategic management. The research method is panel regression with fixed effects. The information base includes the data from 54,341 Russian joint stock companies for the period 2006–2017. A number of variations of the basic model allowed us to establish a statistically significant negative relationship between the change in revenue and CEO turnover in the short term. The obtained results have confirmed the provisions of the theory of the firm regarding the necessity to adapt a CEO to the company’s external and internal environment. The paper shows that foreign CEOs and owners (shareholders) are faster to adapt to a new position, which accelerates the growth of business performance indicators. At the same time, the research demonstrates that a decline in a company’s performance has a short-term effect. This means that boards of directors should not take hasty decisions to switch the CEO after a short-term poor performance.
format	article
author	Orekhova S.V. Kudin L.Sh. Kupera A.V.
author_facet	Orekhova S.V. Kudin L.Sh. Kupera A.V.
author_sort	Orekhova S.V.
title	CEO turnover and company performance: Sensitivity and empirical estimates
title_short	CEO turnover and company performance: Sensitivity and empirical estimates
title_full	CEO turnover and company performance: Sensitivity and empirical estimates
title_fullStr	CEO turnover and company performance: Sensitivity and empirical estimates
title_full_unstemmed	CEO turnover and company performance: Sensitivity and empirical estimates
title_sort	ceo turnover and company performance: sensitivity and empirical estimates
publisher	Ural State University of Economics
publishDate	2019
url	https://doaj.org/article/7750219f534d44b5a8938e877cbfc753
work_keys_str_mv	AT orekhovasv ceoturnoverandcompanyperformancesensitivityandempiricalestimates AT kudinlsh ceoturnoverandcompanyperformancesensitivityandempiricalestimates AT kuperaav ceoturnoverandcompanyperformancesensitivityandempiricalestimates
_version_	1718402847684427776

CEO turnover and company performance: Sensitivity and empirical estimates

Ejemplares similares