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The impact of CEO turnover on firm performance and insolvency risk - A global analysis

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  • Salvi, Antonio
  • Tron, Alberto
  • Colantoni, Federico

Abstract

This research examines the impact of CEO change on company performance by analyzing a global sample of publicly listed firms. The findings demonstrate a significant positive association between CEO change and improvement in a company's Z-Score, indicating the strategic change that a new CEO can bring all over the world regardless of the corporate governance model adopted and cultural differences. The study also finds that the positive impact of CEO turnover on firm performance is present only in the short term (first two years) and are more evident for companies in crisis.

Suggested Citation

  • Salvi, Antonio & Tron, Alberto & Colantoni, Federico, 2024. "The impact of CEO turnover on firm performance and insolvency risk - A global analysis," Finance Research Letters, Elsevier, vol. 62(PA).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001235
    DOI: 10.1016/j.frl.2024.105093
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    References listed on IDEAS

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