Empirical Research on CEO Turnover and Firm-Performance: A Discussion

Posted: 9 Dec 2003

See all articles by James A. Brickley

James A. Brickley

University of Rochester - Simon Business School

Abstract

Engel/Hayes/Wang and Farrell/Whidbee provide new evidence on how firms weight alternative performance measures in making CEO retention and replacement decisions. While their results are statistically significant, firm performance continues to explain very little of the variation in CEO turnover. I argue we have probably reached a point of diminishing returns in estimating logit models that focus on the relation between CEO turnover and firm performance measures. We will have to consider other less-explored issues to increase our understanding of CEO turnovers and replacements. Analyzing age-related issues is one example.

Keywords: CEO turnover, agency problems, incentives

JEL Classification: G30, G34, J33, J44, M41, M51

Suggested Citation

Brickley, James A., Empirical Research on CEO Turnover and Firm-Performance: A Discussion. Journal of Accounting & Economics, Vol. 36, Nos. 1-3, pp. 227-233, December 2003. Available at SSRN: https://ssrn.com/abstract=473881

James A. Brickley (Contact Author)

University of Rochester - Simon Business School ( email )

Carol Simon Hall 3-160L
Rochester, NY 14627
United States
585-275-3433 (Phone)
585-442-6323 (Fax)

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