Does frequent leadership changes influence firm performance? Insights from China

This letter is a first attempt to investigate the relationship between frequent leadership changes during year and firm performance. We analyze how CEO frequency one-year period impact performance indicators of Chinese listed firms. The results panel fixed-effect regression reveal that turnover leads decline in corporate measured by ROA ROE. Moreover, with an increase annual frequency, degree gets more pronounced. These remain robust after controlling for endogeneity using alternate econometric specification 2SLS. study findings assert are not conducive Hence, stability tenure essential sustain optimize financial enterprise.