login

Board Leadership Structure and CEO Turnover

SSRN Electronic JournalPublished 1 January 2000Open access
Vidhan K. Goyal, Chul W. Park
DOI10.2139/ssrn.224055
Source URL
Citations524
View PDF

Abstract

We study whether bestowing CEO and chairman duties on one individual affects a board's decision to dismiss an ineffective CEO. The results show that the sensitivity of CEO turnover to firm performance is significantly lower when the CEO and chairman responsibilities are vested in the same individual. These results are consistent with the view that the lack of independent leadership in firms that combine the CEO and chairman positions makes it difficult for the board to remove poorly performing managers.

Keywords

Business, Management and Accounting