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The Relationship Between Accounting Performance And Ceo Turnover: Evidence From Indonesia

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  • Lindrianasari
  • Jogiyanto Hartono,

Abstract

This study provides empirical evidence regarding the usefulness of accounting information in the issue of CEO turnovers. Previous research shows inconclusive results about the relationship between accounting performance and CEO turnover. Moreover the topic of CEO turnover is still rarely examined in nonwestern countries, such as in Indonesia. This study used data on all companies that were identified as having undergone CEO, President Director for Indonesia, turnovers from 1998-2006. Other firms were included as a control sample. The sample used for testing included 140 companies, consisting of 81 companies with turnovers and 59 companies as a control. Final samples were determined after considering the availability of data and the confounding effects in the period observed. Hypotheses were tested using Logit regression because the dependent variable used is a binary variable, with the notation 1 for turnover and 0 for others. The results show that accounting performance had a statistically significant negative influence over the turnover decision. However, turnover did not affect accounting performance.

Suggested Citation

  • Lindrianasari & Jogiyanto Hartono,, 2011. "The Relationship Between Accounting Performance And Ceo Turnover: Evidence From Indonesia," Accounting & Taxation, The Institute for Business and Finance Research, vol. 3(2), pages 97-107.
    • Handle: RePEc:ibf:acttax:v:3:y:2011:i:2:p:97-107
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    References listed on IDEAS

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    Cited by:

    1. Svetlana V. OREKHOVA & Larisa Sh. KUDIN & Aleksandra V. KUPERA, 2019. "CEO turnover and company performance: Sensitivity and empirical estimates," Upravlenets, Ural State University of Economics, vol. 10(4), pages 2-13, September.
    2. Nera Marinda Machdar, 2019. "Does CEO Turnover Affect Stock Market Performance through Company Performance in Indonesian Companies?," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 4(1), pages 15-21.

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    More about this item

    Keywords

    CEO Turnover; Accounting Performance; Antecedent Factors; Concequences Factors; Routine and Non-Routine Turnover.;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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