| Author: | Wu, Chun Wah Michael |
| Title: | CEO turnover and stock price crash |
| Degree: | D.B.A. |
| Year: | 2013 |
| Subject: | Stocks -- Prices Chief executive officers -- Dismissal of Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | ix, 144 leaves ; 30 cm |
| Language: | English |
| Abstract: | This study investigates whether there is an association between CEO turnover and stock price crash. Using a large sample of U.S. firms from the period 1994 to 2011, I find strong evidence of a positive and significant relation between stock price crash and CEO turnover in the subsequent fiscal year using different crash risk measures and controlling for firm performance measures. The relation is more pronounced for CEO turnover that is not retirement related. In contrast, stock price crash is insignificantly associated with CEO turnover that is retirement related. This evidence provides support for the conjecture that boards are willing to fire CEOs who perform poorly (proxied by stock price crash). Finally, the association between stock price crash and CEO turnover is significant before and after the passage of the Sarbanes Oxley Act (SOX) suggesting that SOX did not affect corporate boards{174} incentives to fire poor performing CEOs. Similarly there are no differences in results for large and small firms. The results of this study add to the literature on links between firm performance and CEO turnover. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| b28256487.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 2.04 MB | Adobe PDF | View/Open |
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