Managerial turnover and strategic change

• 成果类型: Article
• 署名作者: Sliwka, Dirk
• 署名单位: University of Cologne
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.1070.0728
• 发表日期: 2007
• 页码: 1675-1687
• 关键词: CEO TURNOVER; correction; leading indicators; organizational studies; personnel accounting; reputation; STRATEGIC CHANGE

摘要

The connection between strategic change and managerial turnover is studied within a model where managers decide on a firm's strategy Managers as well as firm owners care for the long-term success of a company, but managers are also interested in their own reputation. Due to reputational concerns, managers are reluctant to alter strategic decisions they themselves made in the past even when internal accounting information indicates that they should do so. It is shown that it may well be optimal in some cases to dismiss managers of higher ability while someone less talented may be kept in office when strategic change has to be enforced.