Aggressive Boards and CEO Turnover

Aghamolla, Cyrus; Hashimoto, Tadashi

doi:10.1111/1475-679x.12350

Cited by 15 publications

(6 citation statements)

References 78 publications

(163 reference statements)

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“…An overconfident CEO also has low forced turnover risk when he/she has strong capability. We compare with recent studies and find that they seldom focus on the topic of overconfident CEO such as Aghamolla and Hashimoto (2021), who mention that CEO’s turnover risk is low when a CEO has various talents. Other literature talks about CEO’s forced turnover, shareholders, and control contests (Zhong et al, 2021), the Securities and Exchange Commission’s enforcement actions and the probability of a CEO’s turnover, (Chang et al, 2021); institutional trading, information production, and forced CEO turnover (Chemmanur et al, 2021), the turnover probability for a CEO in a heavily polluting industry (Gu et al, 2021), and a corporation’s return and information signal of a CEO’s turnover to the market (Farah & Li, 2021).…”

Section: Introductionmentioning

confidence: 87%

The Forced Turnover Effect on an Overconfident CEO: Evidence From Taiwan-Listed Firms

2022

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This research focuses on investigating the reasons why an overconfident chief executive officer (CEO) is forced to leave by examining CEO turnover observations from 463 Taiwan-listed companies over the period 2008 to 2016 and using the Cox semi-parametric proportional hazard model to test the reasons for CEOs being laid off. The empirical result shows that overconfidence increases a CEO’s forced turnover risk, but this risk is not significant for an overconfident CEO in a company with a high proportion of controlling shareholders on the board. In addition, an overconfident CEO’s forced turnover risk decreases when he/she has strong business and management ability. This paper contributes to the literature by demonstrating the relationship between a CEO’s forced turnover risk and control-affiliated directors as well as the CEO’s ability.

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Section: Introductionmentioning

confidence: 87%

The Forced Turnover Effect on an Overconfident CEO: Evidence From Taiwan-Listed Firms

2022

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“…For example, Fredrickson, Hambrick, and Baumrin (1988) contend that CEOs are more likely to be dismissed in industries in which there is a larger number of firms, as the number of firms signifies the volume of the executive pool from which firms can hire. Empirically, firms are more aggressive in replacing CEOs when the variance in CEO talent is low, suggesting a number of viable replacements (Aghamolla & Hashimoto, 2021). The presence of potential replacement candidates on the board of directors also may lead to an increase in the likelihood of executive turnover, especially for CEOs (Mobbs, 2013).…”

Section: An Elm Frameworkmentioning

confidence: 99%

Upper Echelon Employment: A Review of the Fundamental Questions Related to the Executive Labor Market

Withers

Lee

Bermiss

et al. 2023

Journal of Management

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The executive labor market (ELM) is a topic of interest that spans several academic fields. The outcomes of the ELM, including executive selection, succession, and compensation, are important considerations as they influence executive decision making and other organizational outcomes. Yet, a comprehensive framework of ELM dynamics currently does not exist. To address this shortcoming, we reviewed the existing literature using five fundamental questions: (1) What executive jobs are available? (2) Who is available to fill executive jobs, and what is valued on the ELM? (3) Who signals interest in the executive jobs? (4) Who gets offered/accepts the executive job, and what is the agreed-upon compensation? (5) How do status and social capital influence ELM outcomes? By answering these questions, our review provides a framework for integrating existing research on the ELM while suggesting avenues for future research.

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“…Subsequently, scholars have extensively analyzed the impact of CEO/board of directors' characteristics on firm performance. Various papers tried to study different elements, such as demographic background (Lohrke, Bedeian & Palmer, 2004), top management team replacement (Sudarsanam & Lai, 2001;Aghamolla & Hashimoto, 2021), CEO characteristics (Abebe & Tangpong, 2009;Miglani, 2014;Susi & Lukason, 2017) and insider representation on board (Judge & Zeithmal, 1992). However, existing empirical evidence is generally ambiguous and mixed (Scafarto et al, 2017;Minichilli, Zattoni, & Zona, 2009).…”

Section: Literature Reviewmentioning

confidence: 99%

The Different Impact of Top Executives’ Turnover on Healthy and Restructured Companies

Morrone¹,

Tron²,

Colantoni³

et al. 2021

IJBM

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The aim of this paper is to investigate if top executives’ turnover affects the performance of a company and if it differently impacts the performances of a healthy and a restructured company. In order to investigate the impact of the renewal of both members of the board of directors and CEO impacts on company profitability, we performed a quantitative analysis based on a sample of 144 Italian companies using a logit model. The findings show that management changes influence the performance of a company. However, the results show a different impact for healthy and restructured companies. The renewal of the board of directors negatively affects the performances of a healthy company while influences positively the probability of a future increase in performances for restructured companies, suggesting useful implications for scholars and practitioners. This analysis confirms that the renewal of top executives can affect the probability of an increase of company performances, especially for distressed firms, contributing to existing literature which is still limited and focused only on few countries.

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Aggressive Boards and CEO Turnover

Cited by 15 publications

References 78 publications

The Forced Turnover Effect on an Overconfident CEO: Evidence From Taiwan-Listed Firms

The Forced Turnover Effect on an Overconfident CEO: Evidence From Taiwan-Listed Firms

Upper Echelon Employment: A Review of the Fundamental Questions Related to the Executive Labor Market

The Different Impact of Top Executives’ Turnover on Healthy and Restructured Companies

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