CEO Turnover in the Italian Financial Market
AbstractWe 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 InfoArticle 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)
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Web page: http://www.gde.unibocconi.it/
Find related papers by JEL classification:
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
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