Firm Performance and Managerial Turnover: The Case of Ukraine
Olga A. Bilyk
affiliation not provided to SSRN
Kyiv School of Economics
Institute for the Study of Labor (IZA); Saint Petersburg State University - Graduate School of Management
February, 28 2009
The paper studies whether and how CEO turnover in Ukrainian firms is related to their performance. Based on a novel dataset covering Ukrainian joint stock companies in 2002-2006, the paper finds statistically significant negative association between the past performance of firms measured by return on sales and return on assets, and the likelihood of managerial turnover. While the strength of the turnover-performance relationship does not seem to depend on factors such as managerial ownership and supervisory board size, we do find significant entrenchment effects associated with ownership by managers. Overall, our analysis suggests that corporate governance in Ukraine operates with a certain degree of efficiency, despite the well-known lacunas in the country's institutional environment.
Number of Pages in PDF File: 37
Keywords: corporate governance, managerial labor market, transition, Ukraine
JEL Classification: G34, J40, L29working papers series
Date posted: March 2, 2009
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