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Ownership, performance and executive turnover in China

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  • Chi, Wei
  • Wang, Yijiang
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Abstract

To better understand the relationship between different types of firm ownership and management turnover, this study classifies ownership along two dimensions: the type of owner and the concentration of ownership. Within this framework, a unique data set is used to study the impact of management turnover on a company's performance. This study, in addition to confirming some of the results from previous studies, includes interesting and important new results. Most importantly, it finds evidence that the sensitivity of CEO turnover to performance is weaker in state-controlled firms than in non-state firms, and varies according to different subtypes of private ownership. We also demonstrate that the turnover-performance relationship is curvilinear in ownership concentration, but that this relationship moves in opposite directions under state and private ownership. Important policy implications of these findings are discussed.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Asian Economics.

Volume (Year): 20 (2009)
Issue (Month): 4 (September)
Pages: 465-478

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Handle: RePEc:eee:asieco:v:20:y:2009:i:4:p:465-478

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Web page: http://www.elsevier.com/locate/asieco

Related research

Keywords: Executive turnover State ownership Performance Concentrated ownership;

References

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Citations

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Cited by:
  1. Pessarossi, Pierre & Weill, Laurent, 2013. "Does CEO turnover matter in China? Evidence from the stock market," Journal of Economics and Business, Elsevier, vol. 70(C), pages 27-42.
  2. Chi, Wei & Zhang, Haiyan, 2010. "Are stronger executive incentives associated with cross-listing? Evidence from China," China Economic Review, Elsevier, vol. 21(1), pages 150-160, March.

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