Top Executive Turnover in Japanese Non-listed Firms: Causes and Consequences
AbstractWe examine the pattern of top executive turnover among small non-listed businesses in Japan using a unique panel data set of about 25,000 firms for 2001-2007 and find the following. First, the likelihood of a change in top executive among non-listed firms is independent of their ex-ante performance, especially when the firms are owned by the top executives themselves or by their relatives. Second, non-listed firms which experienced a top executive turnover saw an improvement in ex-post performance relative to firms without turnover. The extent of the improvement is similar between non-listed firms and listed firms. All of the above results indicate that underperforming non-listed firms do not face disciplinary pressure to replace their executive, but that once new top executives are in place, they exert high managerial effort and thus significantly improve their firm's profitability.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series PIE/CIS Discussion Paper with number 424.
Length: 26 p.
Date of creation: Mar 2009
Date of revision:
Contact details of provider:
Postal: 2-1 Naka, Kunitachi City, Tokyo 186-8603
Web page: http://cis.ier.hit-u.ac.jp/
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-03 (All new papers)
- NEP-BEC-2009-07-03 (Business Economics)
- NEP-LAB-2009-07-03 (Labour Economics)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Digital Resources Section, Hitotsubashi University Library).
If references are entirely missing, you can add them using this form.