CEO Turnovers and Corporate Governance: Evidence from the Copenhagen Stock Exchange
AbstractThis paper examines the relationship between performance and CEO turnovers using a sample of 81 turnovers and 81 matching companies listed on the Copenhagen Stock Exchange. We find that poor performance increases the probability of management replacements and that forced layoffs are value-increasing events while voluntary resignations are value-decreasing events. Institutional investors as active monitors, or part of corporate control, are not exhibited in the analysis of CEO turnovers. If institutional investors have any influence on CEO turnovers, then it is not revealed in our data. But, the results suggest that institutional investors' equity holdings tend to protect managers from replacement.
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Bibliographic InfoPaper provided by Copenhagen Business School, Department of Finance in its series Working Papers with number 1999-10.
Length: 34 pages
Date of creation: 17 May 2001
Date of revision:
Contact details of provider:
Postal: Department of Finance, Copenhagen Business School, Solbjerg Plads 3, A5, DK-2000 Frederiksberg, Denmark
Phone: +45 3815 3815
Web page: http://www.cbs.dk/departments/finance/
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CEO Turnovers; Corporate Governance; Ownership Structure;
Find related papers by JEL classification:
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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- Lausten, Mette, 2002. "CEO turnover, firm performance and corporate governance: empirical evidence on Danish firms," International Journal of Industrial Organization, Elsevier, vol. 20(3), pages 391-414, March.
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