Founder Involvement in CEO Turnover

CEO Education, CEO Turnover, and Firm Performance

We analyze the effects of CEO education on CEO turnover (firing and replacement) and firm performance. Our primary interest is on the role that CEO education plays in a firm’s decision to replace its current CEO, the role that it plays in selecting a new CEO, and on whether CEO education significantly affects performance. We use six main measures of CEO education: whether or not the CEO attende...

Outside Directors and Ceo Turnover

‘this paper examines the relation between the monitoring of CEOs by inside aud outside directors and CEO resignations. CEO resignations are predicted using stock returns and earnings changes as measures of prior performance. There is a stronger association between prior performance and the prhability of a resignation for companies with outsider-dominated boards than for companies with insider-d...

CEO Turnover and Audit Pricing

Top management turnover can be classified into forced turnover and voluntary turnover. Forced CEO turnover may be triggered by poorer operating performance (Helwege et al. 2012) that fails to meet the expectation of corporate board; this pressure of immediate performance improvement may induce the incoming CEO to engage in earnings management (SAS No.99, AICPA 2002), and in turn increase the li...

The Performance Consequences of Ceo Turnover

A Simple Model of Optimal Ceo Turnover

We examine the board of directors’ problem of determining when to terminate a CEO. The optimal policy takes a simple form – the CEO is fired if profits fall below a critical value. The analysis yields the optimal probability of CEO turnover. JEL Code: G34