Firm performance and CEO turnover: the moderating role of CEO attributes

IF 5.5 Q1 BUSINESS

Corporate Governance-The International Journal of Business in Society Pub Date : 2023-06-16 DOI:10.1108/cg-04-2022-0190

A. M. Chijoke-Mgbame, A. Boateng, C. O. Mgbame, K. Yekini

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引用次数: 1

Abstract

Purpose This study aims to examine the effects of firm performance on chief executive officer (CEO) turnover and the moderating role of CEO attributes on the firm performance–CEO turnover relationship. Design/methodology/approach Probit regressions were used to examine the relationship between various CEO attributes and CEO turnover and the moderation effect of firm performance on the CEO attributes–CEO turnover relationship. The sample comprises firms from the FTSE 350 Index covering the period 1999–2018. Findings The results indicate that firm performance negatively and significantly impacts CEO turnover. Further analysis reveals that selected CEO attributes, namely, CEO internal experience, CEO network size and CEO age, moderate the relationship between firm performance and CEO turnover. Specifically, CEO internal experience and performance combine to reduce the likelihood of CEO turnover. However, CEO network size and age when combined with firm performance increase the likelihood of CEO turnover. Practical implications The results imply that boards should pay more attention to CEO attributes in their decisions to hire and fire executive managers as these factors may affect a wide variety of firm outcomes. Originality/value This paper makes key contributions to the CEO turnover and corporate governance literature by providing evidence of key factors other than performance that can affect the CEO dismissal decision. Specifically, this study shows that CEO attributes such as CEO internal experience, CEO networks and CEO age far outweigh the importance of performance as a factor influencing CEO turnover decisions.

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企业绩效与CEO离职:CEO属性的调节作用

目的研究企业绩效对CEO离职的影响，以及CEO属性对企业绩效- CEO离职关系的调节作用。设计/方法/方法采用probit回归检验CEO属性与离职之间的关系，以及企业绩效对CEO属性-离职关系的调节作用。样本包括1999年至2018年期间富时350指数的公司。研究发现:企业绩效对CEO离职有显著负向影响。进一步分析发现，选定的CEO属性，即CEO内部经验、CEO网络规模和CEO年龄，调节了企业绩效与CEO离职的关系。具体来说，CEO内部经验和绩效的结合降低了CEO离职的可能性。然而，当CEO网络规模和年龄与公司绩效相结合时，会增加CEO离职的可能性。研究结果表明，董事会在决定聘用和解雇高管经理时，应更多地关注CEO的特质，因为这些因素可能会影响公司的各种成果。原创性/价值本文为CEO离职和公司治理文献做出了重要贡献，提供了除绩效以外的关键因素可以影响CEO解聘决策的证据。具体而言，本研究表明，作为影响CEO离职决策的因素，CEO内部经验、CEO网络和CEO年龄等CEO属性的重要性远远超过绩效。

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来源期刊

Corporate Governance-The International Journal of Business in Society BUSINESS-

CiteScore

11.20

自引率

33.90%

发文量

期刊介绍： Providing a consistent source of in-depth information, analysis and advice considering corporate governance on an international scale, Corporate Governance: The International Journal of Business in Society focuses on knowledge development, practice and performance standards for scholars and Boards of Directors/ Governors of companies throughout the world. The journal publishes a diverse range of substantive theoretical and methodological debates as well as practical developments in the field of corporate governance worldwide. The journal particularly encourages attention to the impact of changes of business/corporate governance forms and practices on people, and the sustainability of different governance models. Articles that highlight models and structures that advance the interests, dignity and well being of all stakeholders, in a sustainable manner, are particularly welcome. The journal covers a broad spectrum of governance-related themes including: -Effective boardroom performance -Control and regulation -Executive leadership -The role and contribution of external (non-executive) directors -The growing importance of governance in the wake of ever-greater corporate scandals -Redefinitions and reassessments of corporate governance models -The role of business in society -The changing nature of the relationship and responsibilities of the firm towards various stakeholders -The incentives required to encourage more socially- and environmentally-responsible corporate action -The role and impact of local and international regulatory agencies and regimes on corporate behaviour.