Journal of Corporate Finance Vol. 8 No. 1 2002

Board leadership structure and CEO turnover

Vidhan K. Goyal¹; Chul W. Park^1,2

¹ Hong Kong University of Science and Technology · ² University of Hong Kong

Abstract

We study whether bestowing chief executive officer (CEO) and board chairman duties on one individual affects a boards decision to dismiss an ineffective CEO. The results show that the sensitivity of CEO turnover to firm performance is significantly lower when the CEO and chairman duties are vested in the same individual. These results are consistent with the view that the lack of independent leadership in firms that combine the CEO and Chairman positions makes it difficult for the board to remove poorly performing managers.

DOI

10.1016/s0929-1199(01)00028-1

Volume

8

Issue

1

Pages

49-66

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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