CEO Turnover: More Evidence on the Role of Performance Expectations
AbstractPrevious research on CEO turnover indicates that a number of factors, including age, firm performance, and expected firm performance affect CEO turnover. Measurement of expected performance in these studies is typically based on investment analysts’ forecasts of earnings; these expectations potentially suffer from a number of problems, including the tendency for CEOs to “manage” analysts’ expectations. We examine the relationship between performance expectations and CEO turnover using data from NCAA Division I-A college football using a market-determined measure of expected performance, winning percentage against point spreads; this expected performance measure does not suffer from many of the problems that plague analysts’ earnings forecasts. We find that performance expectations, actual expectations, and tenure affect CEO turnover in NCAA Division I-A college football, based on performance data from 102 Division I-A football programs over the period 1980-2004.
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Bibliographic InfoPaper provided by University of Alberta, Department of Economics in its series Working Papers with number 2011-14.
Length: 21 pages
Date of creation: 01 Sep 2011
Date of revision:
CEO turnover; performance expectations; betting markets;
Find related papers by JEL classification:
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
- J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-09 (All new papers)
- NEP-BEC-2011-10-09 (Business Economics)
- NEP-EFF-2011-10-09 (Efficiency & Productivity)
- NEP-HRM-2011-10-09 (Human Capital & Human Resource Management)
- NEP-LAB-2011-10-09 (Labour Economics)
- NEP-SPO-2011-10-09 (Sports & Economics)
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