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Ownership, Performance and Executive Turnover

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Author Info
Chi, Wei
Wang, Yijiang

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Abstract

To better understand the relationship between different types of firm ownership and management turnover, this study classifies ownership along two dimensions: the type of owner and the concentration of ownership. Within this framework, a unique data set is used to study the impact of management turnover on a company’s performance. This study, in addition to confirming some of the results from previous studies, includes interesting and important new results. Most importantly, it finds evidence that the sensitivity of CEO turnover to performance is weaker in state-controlled firms than in non-state firms, and varies according to different subtypes of private ownership. We also demonstrate that the turnover–performance relationship is curvilinear in ownership concentration, but that this relationship moves in opposite directions under state and private ownership. Important policy implications of these findings are discussed.

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File URL: http://mpra.ub.uni-muenchen.de/15301/
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File URL: http://mpra.ub.uni-muenchen.de/15302/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15301.

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Date of creation: May 2007
Date of revision: Apr 2009
Handle: RePEc:pra:mprapa:15301

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Related research
Keywords: Executive Turnover; state ownership; performance; concentrated ownership;

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Find related papers by JEL classification:
M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions

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