Performance-induced CEO turnover

@inproceedings{Jenter2010PerformanceinducedCT,
  title={Performance-induced CEO turnover},
  author={Dirk Jenter and NBER djenter},
  year={2010}
}
  • Dirk Jenter, NBER djenter
  • Published 2010
This paper re-examines the empirical relation between CEO turnover and firm performance. We find that boards aggressively fire CEOs for poor performance, and that the turnover-performance sensitivity increases substantially with board quality. In the first five years of tenure, CEOs who perform in the bottom quintile are 42 percentage points more likely to depart than CEOs in the top quintile. This spread increases to more than 70 percentage points for firms with high quality boards. The… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.

Explore Further: Topics Discussed in This Paper

References

Publications referenced by this paper.
Showing 1-10 of 36 references

The Determinants of board structure

  • Linck, S James, Jeffry M. Netter, Tina Yang
  • Journal of Financial Economics
  • 2008
Highly Influential
5 Excerpts

The determinants of corporate board size and composition: An empirical analysis

  • A Boone, L. C. Field, J. M. Karpoff, C. G. Raheja
  • Journal of Financial Economics
  • 2007
Highly Influential
6 Excerpts

The modern industrial revolution, exit and the failure of internal control systems

  • M. Jensen
  • Journal of Finance
  • 1993
Highly Influential
4 Excerpts

Are all inside directors the same? Do they entrench CEOs or facilitate more informed board decisions

  • R. W. Masulis, S. Mobbs
  • 2009
1 Excerpt

A theory of board control and size

  • M. Harris, A. Raviv
  • Review of Financial Studies,
  • 2008

Why are CEOs rarely fired? Evidence from structural estimation

  • Taylor, A Lucian
  • Working paper,
  • 2008

A theory of friendly boards

  • Adams, B Renée, Ferreira, Daniel
  • Journal of Finance
  • 2007