Chief Executive Officer Turnovers and the Performance of China's Listed Enterprises

Hong Kong Institute of Economics and Business Strategy Working Paper No. 1113

49 Pages Posted: 9 Jan 2005

See all articles by Eric C. Chang

Eric C. Chang

University of Hong Kong - School of Business

Sonia M. L. Wong

University of Hong Kong

Date Written: November 2004

Abstract

This study examines the relation between chief executive officer (CEO) turnovers and performance in China's listed enterprises where controlling shareholders are state-owned entities. We obtain three results. First, we offer evidence that the likelihood of forced CEO turnover is related to the incidence of negative earnings but not to industry-adjusted return on asset. Second, we document some improvement in accounting performance following CEO turnover, but the extent of the improvement is smaller and less significant than what has been documented for U.S. and Japanese enterprises. Third, we show that there is no significant relation between CEO turnovers and stock price performance.

Keywords: CEO turnovers, enterprise performance, state and private ownership

JEL Classification: G3

Suggested Citation

Chang, Eric Chieh C. and Wong, Sonia M. L., Chief Executive Officer Turnovers and the Performance of China's Listed Enterprises (November 2004). Hong Kong Institute of Economics and Business Strategy Working Paper No. 1113. Available at SSRN: https://ssrn.com/abstract=644741 or http://dx.doi.org/10.2139/ssrn.644741

Eric Chieh C. Chang

University of Hong Kong - School of Business ( email )

Meng Wah Complex
Pokfulam Road
Hong Kong
China

Sonia M. L. Wong (Contact Author)

University of Hong Kong ( email )

1021, KKL Building
Pokfulam Road
Hong Kong
China

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