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Board Leadership Structure and CEO Turnover

2000; RELX Group (Netherlands); Linguagem: Inglês

10.2139/ssrn.224055

1556-5068

Vidhan K. Goyal, Chul W. Park,

Family Business Performance and Succession

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.