CEO turnovers due to poor industry performances: An examination of the boards’ retention criteria

Li, L; Lam, P; Tong, WHS; Law, J

CEO turnovers due to poor industry performances: An examination of the boards’ retention criteria

Li, L Lam, P Tong, WHS Law, J

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Publisher:: Elsevier
Publication Type:: Journal Article
Citation:: Journal of Accounting and Public Policy, 2024, 44, pp. 107178
Issue Date:: 2024-03-01

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Field	Value	Language
dc.contributor.author	Li, L
dc.contributor.author	Lam, P
dc.contributor.author	Tong, WHS
dc.contributor.author	Law, J
dc.date.accessioned	2024-08-13T03:28:08Z
dc.date.available	2024-08-13T03:28:08Z
dc.date.issued	2024-03-01
dc.identifier.citation	Journal of Accounting and Public Policy, 2024, 44, pp. 107178
dc.identifier.issn	0278-4254
dc.identifier.issn	1873-2070
dc.identifier.uri	http://hdl.handle.net/10453/180392
dc.description.abstract	Numerous studies examine CEO turnover but rarely in the context of business cycles. We demonstrate that the role of the set of turnover decision parameters could change according to industry conditions. Specifically, idiosyncratic returns are more conducive to forced CEO turnover probabilities during recessions than during booms, whereas the opposite is true for industry returns. We provide evidence supporting that idiosyncratic returns are more correlated with managerial ability and stock prices are more informative during recessions. Our findings shed light on how CEOs are assessed by company boards when making turnover decisions.
dc.language	en
dc.publisher	Elsevier
dc.relation.ispartof	Journal of Accounting and Public Policy
dc.relation.isbasedon	10.1016/j.jaccpubpol.2024.107178
dc.rights	info:eu-repo/semantics/embargoedAccess
dc.subject	1501 Accounting, Auditing and Accountability
dc.subject.classification	Accounting
dc.subject.classification	3501 Accounting, auditing and accountability
dc.subject.classification	4407 Policy and administration
dc.title	CEO turnovers due to poor industry performances: An examination of the boards’ retention criteria
dc.type	Journal Article
utslib.citation.volume	44
utslib.for	1501 Accounting, Auditing and Accountability
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Business
pubs.organisational-group	University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	embargoed	*
utslib.copyright.embargo	2026-03-01T00:00:00+1000Z
dc.date.updated	2024-08-13T03:28:06Z
pubs.publication-status	Published
pubs.volume	44

Abstract:

Numerous studies examine CEO turnover but rarely in the context of business cycles. We demonstrate that the role of the set of turnover decision parameters could change according to industry conditions. Specifically, idiosyncratic returns are more conducive to forced CEO turnover probabilities during recessions than during booms, whereas the opposite is true for industry returns. We provide evidence supporting that idiosyncratic returns are more correlated with managerial ability and stock prices are more informative during recessions. Our findings shed light on how CEOs are assessed by company boards when making turnover decisions.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/180392