CEO turnover: Cross-country effects

IF 4.6 3区管理学 Q1 BUSINESS

Corporate Governance-An International Review Pub Date : 2023-01-20 DOI:10.1111/corg.12506

Natasha Burns, Kristina Minnick, Laura Starks

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引用次数: 3

Abstract

Research Question/Issue

We examine how countries' cultural and legal environment, in addition to firm-level governance mechanisms, affects firms' retention and termination decision of the CEO.

Research Findings/Insights

Previous research focuses primarily on the effects of governance structures and incentives on turnover. In this paper, we focus on two additional institutions—cultural and legal. We find that in cultures characterized by higher individualism, competition, and stronger views that hard work leads to success, boards are more likely to replace CEOs in response to poor shareholder performance. Conversely, we find that in more corrupt cultures and cultures more protective of employees, there is lower turnover–performance sensitivity.

Theoretical/Academic Implications

Williamson (2000) provided a framework consisting of four levels of institutional influences on economic activity: (1) cultural norms, (2) the legal system, (3) governance structures, and (4) resource allocation and employment. Previous research focuses primarily on the two highest levels; we focus on the two more basic levels, cultural and legal, while controlling for firm-level governance.

Practitioner/Policy Implications

Cultural values and legal conditions combine with the firm's governance structure to affect CEO turnover and its sensitivity to firm shareholder performance.

查看原文本刊更多论文

CEO更替：跨国效应

世界各地的公司董事会及其管理层面临着不同的环境，包括文化、法律和监管属性的差异。研究这些变化对董事会首席执行官签约和监督过程的影响，与Williamson（2000）对制度影响的强调一致，我们发现首席执行官更替随着主要影响而系统地变化。具体而言，CEO更替受到一个国家的投资者保护、劳动力刚性以及外部和内部治理机制的影响。初稿，2018年12月30日

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Corporate Governance-An International Review Multiple-

CiteScore

7.00

自引率

11.30%

发文量

期刊介绍： The mission of Corporate Governance: An International Review is to publish cutting-edge international business research on the phenomena of comparative corporate governance throughout the global economy. Our ultimate goal is a rigorous and relevant global theory of corporate governance. We define corporate governance broadly as the exercise of power over corporate entities so as to increase the value provided to the organization"s various stakeholders, as well as making those stakeholders accountable for acting responsibly with regard to the protection, generation, and distribution of wealth invested in the firm. Because of this broad conceptualization, a wide variety of academic disciplines can contribute to our understanding.