Is China's corporate governance beginning to come of age? The case of CEO turnover

Dennis K.K. Fan; Chung Ming Lau; Michael Young

doi:10.1016/j.pacfin.2006.08.001

Is China's corporate governance beginning to come of age? The case of CEO turnover

Dennis K.K. Fan^*, Chung Ming Lau, Michael Young

^*Corresponding author for this work

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

40 Citations (Scopus)

Abstract

This study examines the effectiveness of China's corporate governance during the rapid transition of its economy. We find that poor performance is associated with voluntary and involuntary CEO turnover. We also find that exceptionally good performance is marginally associated with voluntary CEO turnover. For governance variables, more non-executive directors are associated with CEO turnover and CEO duality is marginally negatively related to CEO turnover. In addition, some of the governance variables are related to voluntary, but not involuntary, turnover. These results indicate that China's corporate governance is beginning to resemble the Anglo-American model as its market institutions come of age.

Original language	English
Pages (from-to)	105-120
Number of pages	16
Journal	Pacific Basin Finance Journal
Volume	15
Issue number	2
DOIs	https://doi.org/10.1016/j.pacfin.2006.08.001
Publication status	Published - Apr 2007

Scopus Subject Areas

Finance
Economics and Econometrics

User-Defined Keywords

CEO turnover
Chinese firms
Corporate governance
Transitional economy

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10.1016/j.pacfin.2006.08.001

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abstract = "This study examines the effectiveness of China's corporate governance during the rapid transition of its economy. We find that poor performance is associated with voluntary and involuntary CEO turnover. We also find that exceptionally good performance is marginally associated with voluntary CEO turnover. For governance variables, more non-executive directors are associated with CEO turnover and CEO duality is marginally negatively related to CEO turnover. In addition, some of the governance variables are related to voluntary, but not involuntary, turnover. These results indicate that China's corporate governance is beginning to resemble the Anglo-American model as its market institutions come of age.",

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AB - This study examines the effectiveness of China's corporate governance during the rapid transition of its economy. We find that poor performance is associated with voluntary and involuntary CEO turnover. We also find that exceptionally good performance is marginally associated with voluntary CEO turnover. For governance variables, more non-executive directors are associated with CEO turnover and CEO duality is marginally negatively related to CEO turnover. In addition, some of the governance variables are related to voluntary, but not involuntary, turnover. These results indicate that China's corporate governance is beginning to resemble the Anglo-American model as its market institutions come of age.

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Is China's corporate governance beginning to come of age? The case of CEO turnover

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