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Agency, firm growth, and managerial turnover: A Chinese study

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  • Fu, Kangkang
  • Kwok, Wing Chun
  • Wong, George

Abstract

Consistent with the notions of growth-induced and disciplinary-induced CEO turnover, we find that the probability of CEO dismissal in the US and China is significantly higher for firms with better growth prospects or poorer past performance. Relative to the US, Chinese firms display a stronger incentive to replace their CEOs when better growth opportunities arise. We find weaker evidence for both growth- and disciplinary-induced CEO dismissal for Chinese state-owned enterprises (SOEs).

Suggested Citation

  • Fu, Kangkang & Kwok, Wing Chun & Wong, George, 2020. "Agency, firm growth, and managerial turnover: A Chinese study," Pacific-Basin Finance Journal, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:pacfin:v:63:y:2020:i:c:s0927538x20302018
    DOI: 10.1016/j.pacfin.2020.101401
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    Cited by:

    1. Chen, Te-Feng & Kwok, Wing Chun & Wong, George, 2021. "Does the q theory of investment work well in China?," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).

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