The Influence of Institutional Investors Over CEO Turnover in the UK
81 Pages Posted: 25 Jan 2008
Date Written: January 4, 2008
This paper explores the relationship between institutional shareholdings and CEO turnover. Uniquely to this field of research we separately model the institutions that have large blocks of shareholdings from those with smaller blocks. We show that the likelihood of a CEO being forced from office is negative and significantly related to firm performance and, conditional on poor performance, positive and significantly related to the presence of a large institutional shareholding or high concentration of institutional shareholdings.
Keywords: Institutional Investors, CEO Turnover
JEL Classification: G32
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