This study examines the performance consequences of managerial turnover in firms operating in a weak institutional environment and facing pressures to restructure and downsize. A CEO promoted from within the firm has better knowledge of the organization than an outsider but may be bound by existing social ties with the workers. An outsider successor not burdened by such ties may grasp problems ...

In this paper we investigate the reputational penalties to managers of firms announcing earnings restatements. More specifically, we examine management turnover and the subsequent employment of displaced managers at firms announcing earnings restatements during 1997 or 1998. In contrast to prior research (Beneish 1999; Agrawal et al. 1999), which does not find increased turnover following GAAP ...

We study management turnover in the set of top 5 executives for a sample of 443 large firms from 1993-1998. Using information from news articles and severance disclosures in proxy statements, we find that the rate of forced turnover for non-CEOs is at least as great as the rate for CEOs, but the sensitivity of turnover to aggregate firm performance is relatively smaller for non-CEOs. The probab...