Agency, firm growth, and managerial turnover: A Chinese study

Kangkang Fu; Wing Chun Kwok; George Wong

doi:10.1016/j.pacfin.2020.101401

Agency, firm growth, and managerial turnover: A Chinese study

Kangkang Fu, Wing Chun Kwok^*, George Wong

^*Corresponding author for this work

Research output: Contribution to journal › Journal article › peer-review

5 Citations (Scopus)

Abstract

Consistent with the notions of growth-induced and disciplinary-induced CEO turnover, we find that the probability of CEO dismissal in the US and China is significantly higher for firms with better growth prospects or poorer past performance. Relative to the US, Chinese firms display a stronger incentive to replace their CEOs when better growth opportunities arise. We find weaker evidence for both growth- and disciplinary-induced CEO dismissal for Chinese state-owned enterprises (SOEs).

Original language	English
Article number	101401
Number of pages	9
Journal	Pacific Basin Finance Journal
Volume	63
DOIs	https://doi.org/10.1016/j.pacfin.2020.101401
Publication status	Published - Oct 2020

Scopus Subject Areas

Finance
Economics and Econometrics

User-Defined Keywords

Firm growth
Life-cycle
Managerial turnover
State-owned enterprises

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10.1016/j.pacfin.2020.101401

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title = "Agency, firm growth, and managerial turnover: A Chinese study",

abstract = "Consistent with the notions of growth-induced and disciplinary-induced CEO turnover, we find that the probability of CEO dismissal in the US and China is significantly higher for firms with better growth prospects or poorer past performance. Relative to the US, Chinese firms display a stronger incentive to replace their CEOs when better growth opportunities arise. We find weaker evidence for both growth- and disciplinary-induced CEO dismissal for Chinese state-owned enterprises (SOEs).",

keywords = "Firm growth, Life-cycle, Managerial turnover, State-owned enterprises",

author = "Kangkang Fu and Kwok, {Wing Chun} and George Wong",

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language = "English",

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T1 - Agency, firm growth, and managerial turnover

T2 - A Chinese study

AU - Fu, Kangkang

AU - Kwok, Wing Chun

AU - Wong, George

PY - 2020/10

Y1 - 2020/10

N2 - Consistent with the notions of growth-induced and disciplinary-induced CEO turnover, we find that the probability of CEO dismissal in the US and China is significantly higher for firms with better growth prospects or poorer past performance. Relative to the US, Chinese firms display a stronger incentive to replace their CEOs when better growth opportunities arise. We find weaker evidence for both growth- and disciplinary-induced CEO dismissal for Chinese state-owned enterprises (SOEs).

AB - Consistent with the notions of growth-induced and disciplinary-induced CEO turnover, we find that the probability of CEO dismissal in the US and China is significantly higher for firms with better growth prospects or poorer past performance. Relative to the US, Chinese firms display a stronger incentive to replace their CEOs when better growth opportunities arise. We find weaker evidence for both growth- and disciplinary-induced CEO dismissal for Chinese state-owned enterprises (SOEs).

KW - Firm growth

KW - Life-cycle

KW - Managerial turnover

KW - State-owned enterprises

UR - http://www.scopus.com/inward/record.url?scp=85088950094&partnerID=8YFLogxK

U2 - 10.1016/j.pacfin.2020.101401

DO - 10.1016/j.pacfin.2020.101401

M3 - Journal article

AN - SCOPUS:85088950094

SN - 0927-538X

VL - 63

JO - Pacific Basin Finance Journal

JF - Pacific Basin Finance Journal

M1 - 101401

ER -

Agency, firm growth, and managerial turnover: A Chinese study

Abstract

Scopus Subject Areas

User-Defined Keywords

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