We study the effect of corporate culture on the relationship between firm performance and CEO turnover. Utilising a measure of cultural dimension developed in organisation behaviour research, we quantify corporate culture by assessing official documents using a text analysis approach. We employ this quantification to examine the impact of culture on CEO turnover, especially in the case of poor firm-specific performance. First, we find strong evidence of a negative relationship between firm-specific performance and CEO turnover. Second, we demonstrate that the probability of a CEO change, on average, is positively influenced by the competition- and creation-oriented cultures. The negative relationship between firm-specific performance and CEO turnover is reinforced by the control-oriented culture and reduced by the creation-oriented culture. Finally, we study the CEO insider or outsider succession and observe that the creation-oriented culture has a negative relationship with the probability of hiring an outsider. Moreover, the creation-oriented culture weakens the negative relationship existing between the firm-specific performance under the incumbent CEO and the probability of hiring an outsider.

Since 2007, monetary authorities around the globe have reduced their key policy interest rates to unprecedented low levels and intervened with non-standard policy measures (i.e., monetary easing and liquidity provision) to support funding conditions for banks, enhance lending to the private sector and contain contagion in financial markets (e.g., European Central Bank, 2011). Using a detailed dataset of monetary policy interventions between June 2007 and June 2012 in the most advanced monetary areas (the Euro area, Japan, the U.S., the UK and Switzerland), we analyze their effects at three different levels, including (1) the interbank credit market, considering the 3-month LIBOR-OIS spread as a measure of financial distress (e.g., Taylor and Williams, 2009); (2) the stock market, represented by wide equity indices; and (3) the banking sector, focusing on global systematically important financial institutions (G-SIFIs). We demonstrate that different monetary policy interventions from single central banks have produced a diverse market reaction. Standard measures have been more effective than non-conventional ones in restoring the interbank market, which is fundamental for maintaining a fully operational traditional interest rate channel and for guaranteeing the normal functioning of financial intermediation. Non-traditional measures have registered a stronger stock market reaction with respect to standard interest rate decisions, both in terms of broad equity indices and single prices of large banks.