Managerial succession and firm performance

• 成果类型: Article
• 署名作者: Huson, MR; Malatesta, PH; Parrino, R
• 署名单位: University of Alberta; University of Washington; University of Washington Seattle; University of Texas System; University of Texas Austin
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2003.08.002
• 发表日期: 2004
• 页码: 237-275
• 关键词: CORPORATE GOVERNANCE; ceo turnover; CEO succession; firm performance

摘要

We examine CEO turnover and firm financial performance. Accounting measures of performance relative to other firms deteriorate prior to CEO turnover and improve thereafter. The degree of improvement is positively related to the level of institutional shareholdings, the presence of an outsider-dominated board, and the appointment of an outsider (rather than an insider) CEO. Turnover announcements are associated with significantly positive average abnormal stock returns, which are in turn significantly positively related to subsequent changes in accounting measures of performance. This suggests that investors view turnover announcements as good news presaging performance improvements. (C) 2004 Elsevier B.V. All rights reserved.