CEO Tenure and Firm Value

• 成果类型: Article
• 署名作者: Brochet, Francois; Limbach, Peter; Schmid, Markus; Scholz-Daneshgari, Meik
• 署名单位: Boston University; University of Cologne; University of St Gallen; Helmholtz Association; Karlsruhe Institute of Technology
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2019-0295
• 发表日期: 2021
• 页码: 47-71
• 关键词: LOCALLY WEIGHTED REGRESSION; work experience; career concerns; performance; MARKET; turnover; COMPENSATION; longevity; deaths; match

摘要

Our study is the first to provide systematic evidence of a hump-shaped CEO tenure-firm value relation. Cross-sectionally, firm value starts to decline after fewer years of CEO tenure in more dynamic industries, if CEOs are less adaptable to changes, and in the presence of greater labor market frictions. Overall, the dynamics of CEO-firm match quality appear to be a first-order driver of the CEO tenure-firm value association, as explained by CEO characteristics (adaptability), firm/industry characteristics (dynamism), and labor market characteristics that facilitate optimal matching between firms and CEOs.