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CEO Turnover in the Italian Financial Market

Author

Listed:
  • Emilio Barucci

    () (Department of Mathematics, Politecnico di Milano)

  • Carlo Bianchi

    (University of Pisa)

  • Mirko Frediani

    (University of Pisa)

Abstract

We investigate ceo turnover in the Italian financial market analyzing a dataset covering the period 1992-2003 for all listed companies. The likelihood of ceo turnover is higher for poorly performing companies, unless the company is controlled by a family. Managers’ entrenchment is observed: managers holding shares of the company are less likely to lose their job. Ownership composition plays a relevant role: turnover is more likely when the largest shareholder holds a large stake or a small stake; outside blockholders and institutional investors do not affect it. A weak internal governance is associated with a low turnover rate. It seems that recent innovations on financial market regulation are associated with a lower ceo turnover rate with no effect on the ceo turnover-performance relation.

Suggested Citation

  • Emilio Barucci & Carlo Bianchi & Mirko Frediani, 2006. "CEO Turnover in the Italian Financial Market," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 65(2), pages 127-154, November.
  • Handle: RePEc:gde:journl:gde_v65_n2_p127-154
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    CEO turnover; performance; Italian financial market; regulation;

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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