CEO turnover in a competitive assignment framework

• 成果类型: Article
• 署名作者: Eisfeldt, Andrea L.; Kuhnen, Camelia M.
• 署名单位: University of California System; University of California Los Angeles; Northwestern University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.02.020
• 发表日期: 2013
• 页码: 351-372
• 关键词: CEO TURNOVER; Competitive assignment

摘要

There is widespread concern about whether Chief Executive Officers (CEOs) are appropriately punished for poor performance. While CEOs are more likely to be forced out if their performance is poor relative to the industry average, overall industry performance also matters. This seems puzzling if termination is disciplinary, however, we show that both absolute and relative performance-driven turnover can be natural and efficient outcomes in a competitive assignment model in which CEOs and firms form matches based on multiple characteristics. The model also has new predictions about replacement managers' equilibrium pay and performance. We document CEO turnover events during 1992-2006 and provide empirical support for our model. (C) 2013 Elsevier B.V. All rights reserved.