Board influence on the selection of external accounting executives

Vafeas, Nikos; Vlittis, Adamos

doi:10.1016/j.bar.2014.08.005

Cited by 3 publications

(2 citation statements)

References 66 publications

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“…The result as displayed in Table 5 shows that blockholders ownership is significant at 5% level with a positive coefficient and p-value of 0.040, which implies that, the more the percentage of blockholders ownership in the company, the higher the probability of selecting an outside CEO. This finding supports the hypothesis and it agrees with the previous empirical results obtained particularly by Vafeas & Vlittis (2014), Ishak et al (2012), and Thanh & Heaney (2013) that firms dominated with blockholders are more independent and are inclined to select external candidates as CEOs.…”

Section: Methodssupporting

confidence: 92%

“…Blockholder controlled firms are more likely to select an outsider candidate as successor. Vafeas & Vlittis (2014) argue that ownership structure is a very important determinant of appointing an outside CEO. This is because of the need for policy and strategy changes for improved performance, especially as the new CEOs are not parts of the existing policies and strategies and therefore, will be in better position to introduce new changes to improve the fortune of the corporation (Ishak et al, 2012).…”

Section: Block Holder Ownershipmentioning

confidence: 99%

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Outsider vs insider: Does firm governance matter?

Abdullahi

Ishak

Sawandi

2018

BEH

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As CEO turnover occurs, the company may select an insider or outsider as a successor. This study attempts to ascertain whether firm performance, female directors, board religiosity and blockholder ownership influence the decision to appoint an internal or external candidate. Results from logistic regression analysis on 72 succession events over a five-year period (2011 to 2015) reveal that firms which are controlled by blockholders and those with females on their boards tend to select an outsider as the successor. Meanwhile, firms that have Muslims on their boards are more likely to select insiders as successors. This study implies that poor firm performance does not necessarily lead to outside CEO selection choice. On the overall, the findings indicate that blockholder ownership and gender diversity in the boardroom matter in the Nigerian corporate landscape.JEL Classifications: M41, M42, M48, G34, G38

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Section: Methodssupporting

confidence: 92%

Section: Block Holder Ownershipmentioning

confidence: 99%

Outsider vs insider: Does firm governance matter?

Abdullahi

Ishak

Sawandi

2018

BEH

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Economic consequences of unqualified chief accounting officer announcements

Liu

2021

Applied Economics Letters

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Asset impairments surrounding chief financial officer turnover

Bugeja,

Spiller,

Spiropoulos

et al. 2024

Australian Journal of Management

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We examine the effect of chief financial officer (CFO) turnover on the likelihood and size of asset impairments. Using Australian data, we find evidence consistent with incoming CFOs recording larger asset impairments, particularly when they are external hires with prior listed experience, or receive equity-based compensation. Our results also indicate that outgoing CFOs report higher profits in the year prior to their departure by reporting fewer and smaller asset impairments. This effect is larger when outgoing CFOs move to another listed firm or receive equity-based compensation, consistent with reputational and compensation incentives to maximise earnings. Overall, our results provide evidence of the independent influence CFOs have on financial reporting. JEL Classification: M41, G34, M40

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Board influence on the selection of external accounting executives

Cited by 3 publications

References 66 publications

Outsider vs insider: Does firm governance matter?

Outsider vs insider: Does firm governance matter?

Economic consequences of unqualified chief accounting officer announcements

Asset impairments surrounding chief financial officer turnover

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