Governance specifics in cooperative banks. or, why do managers in italian cooperative banks "survive" longer

This paper investigates management turnover in Italian banks by means of the survival analysis method. The study tests whether management turnover differs according to different types of banks; and whether top managers in non-commercial banks are more likely to stay on in their managerial position - to "survive" longer than top managers in commercial banks. Data from 1993 to 2003 have been considered for all Italian banks. On the one hand, results confirm that the juridical form of banks is directly related to management turnover. Cooperative banks show a superior survival probability in comparison to other banks. On the other hand, results show that in Italian banks, management turnover is less frequent for managers with a high level of education and with honorific titles. Top managers in cooperative banks tend to survive longer than top managers in commercial banks also when bank performance is below average. Finally, the paper evaluates the impact of business cycles on management turnover.