CEO TURNOVER AND THE FIRMS INVESTMENT DECISIONS

• 成果类型: Article
• 署名作者: WEISBACH, MS
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/0304-405X(94)00793-Z
• 发表日期: 1995
• 页码: 159-188
• 关键词: CEO TURNOVER; Divestitures; MANAGERIAL THEORIES OF INVESTMENT

摘要

This paper examines the relation between management turnover and divestitures of recently acquired divisions. The empirical results indicate that at the time of a management change, there is an increased probability of divesting an acquisition at a loss or one considered unprofitable by the press. The probability increases by about the same amount regardless of whether the change is an apparent age-65 retirement or a resignation. Overall, the results are consistent with a variety of agency-based theories of corporate investment and suggest that management changes are important events for corporations because they lead to reversals of poor prior decisions.