Corporate litigation and executive turnover

Employee disputes and CEO turnover: Evidence from labor lawsuits

“…In Column (2), our dependent variable is ΔTurnover during the period [0,+3] and is assigned a value of one for the managers holding CEO position in year 0 but do not hold the position for the year +3, otherwise zero (Agrawal et al, and Cheng et al, ). In Column (3), we extend our dependent variable ΔTurnover to the time frame [−1,+3] following Aharony et al () who may capture any preemptive responses. CEO retirements are different that forced terminations.…”

“…As executive officers are more likely to leave a firm following poor performance (Denis, Denis, & Sarin, 1997;Warner, Watts, & Wruck, 1988;Weisbach, 1988), we expect that increased costs and declining firm values after labor-related allegations increase CEO turnover. While environmental, antitrust, intellectual property, and contractual lawsuits also increase the CEO turnover (Aharony et al, 2015), our study is motivated by employee lawsuits.…”

Information systems, agency problems, and fraud

“…They find that fraud has a massive impact on shareholder wealth, but that improved information and corporate governance, as well as more timely governance (such as timelier CEO turnover; Aharony et al 2015), can mitigate the negative wealth effects. The evidence is consistent with related work This table summarizes the various papers that focus on information systems, agency problems, and fraud in this special issue.…”

Director Networks, Turnover, and Appointments

“…4 Aharony, Liu and Yawson (2015) report that the probability of CEO and other executive director turnover increases following contractual lawsuits. In recent years, an increasing number of studies on developing countries, such as China, unveils that the relationship between turnover and performance is weakened in the context 4 The relationship between turnover probability and performance is also tested in the presence of other corporate events as Mikkelson and Partch (1996) demonstrate that the relation is only significant in periods of high takeover activity and hence mainly in the context of strong takeover threat.…”