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CEO power and discontinued operations

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  • Sun, Li
  • Skousen, Christopher J.

Abstract

Using a sample of 3678 firm-year observations with discontinued operations from 1992 to 2019, and a matched sample of 3678 observations without discontinued operations, we find a significant positive relationship between CEO power and discontinued operations, measured as the likelihood and magnitude of discontinued operations. Our results suggest that more powerful CEOs are more likely to discontinue business operations and report a larger magnitude of discontinued operations than less powerful CEOs.

Suggested Citation

  • Sun, Li & Skousen, Christopher J., 2022. "CEO power and discontinued operations," Advances in accounting, Elsevier, vol. 58(C).
    • Handle: RePEc:eee:advacc:v:58:y:2022:i:c:s0882611022000323
    DOI: 10.1016/j.adiac.2022.100613
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    More about this item

    Keywords

    CEO power; Discontinued operations; Likelihood of discontinued operations; Magnitude of discontinued operations;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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