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CEO Turnover in the Italian Financial Market

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Author Info

  • Emilio Barucci

    ()
    (Department of Mathematics, Politecnico di Milano)

  • Carlo Bianchi

    (University of Pisa)

  • Mirko Frediani

    (University of Pisa)

Abstract

We investigate ceo turnover in the Italian financial market analyzing a dataset covering the period 1992-2003 for all listed companies. The likelihood of ceo turnover is higher for poorly performing companies, unless the company is controlled by a family. Managers’ entrenchment is observed: managers holding shares of the company are less likely to lose their job. Ownership composition plays a relevant role: turnover is more likely when the largest shareholder holds a large stake or a small stake; outside blockholders and institutional investors do not affect it. A weak internal governance is associated with a low turnover rate. It seems that recent innovations on financial market regulation are associated with a lower ceo turnover rate with no effect on the ceo turnover-performance relation.

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Bibliographic Info

Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 65 (2006)
Issue (Month): 2 (November)
Pages: 127-154

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Handle: RePEc:gde:journl:gde_v65_n2_p127-154

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Related research

Keywords: CEO turnover; performance; Italian financial market; regulation;

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References

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  1. Volpin, Paolo F., 2002. "Governance with poor investor protection: evidence from top executive turnover in Italy," Journal of Financial Economics, Elsevier, vol. 64(1), pages 61-90, April.
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