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 journalJournal articlepeer-review

    38 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 languageEnglish
    Pages (from-to)105-120
    Number of pages16
    JournalPacific Basin Finance Journal
    Volume15
    Issue number2
    DOIs
    Publication statusPublished - Apr 2007

    Scopus Subject Areas

    • Finance
    • Economics and Econometrics

    User-Defined Keywords

    • CEO turnover
    • Chinese firms
    • Corporate governance
    • Transitional economy

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