Fired or Retired? A Competing Risks Analysis of Chief Executive Turnover

• 成果类型: Article
• 署名作者: Gregory-Smith, Ian; Thompson, Steve; Wright, Peter W.
• 署名单位: University of Nottingham
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.1468-0297.2008.02243.x
• 发表日期: 2009
• 页码: 463-481
• 关键词: CORPORATE GOVERNANCE; ceo turnover; performance; COMPENSATION; succession; DIRECTORS; OWNERSHIP; FAILURE

摘要

We apply duration analysis to model the tenure and mode of exit of CEOs from FTSE 350 companies from 1996-2005, a decade in which corporate governance reforms have sought to increase the accountability of the CEO to shareholders and their representatives on the board. We find a greater likelihood of dismissal in the latter part of the period. However, we also find that the likelihood of forced departure sharply decreases from the fifth year of a CEO's tenure. We find evidence that this is because CEOs who survive beyond year four are able to entrench themselves in their position.