CEO Turnover: More Evidence on the Role of Performance Expectations

Brad Humphreys, Rodney Paul and Andrew Weinbach

No 2011-14, Working Papers from University of Alberta, Department of Economics

Abstract: Previous research on CEO turnover indicates that a number of factors, including age, firm performance, and expected firm performance affect CEO turnover. Measurement of expected performance in these studies is typically based on investment analysts’ forecasts of earnings; these expectations potentially suffer from a number of problems, including the tendency for CEOs to “manage” analysts’ expectations. We examine the relationship between performance expectations and CEO turnover using data from NCAA Division I-A college football using a market-determined measure of expected performance, winning percentage against point spreads; this expected performance measure does not suffer from many of the problems that plague analysts’ earnings forecasts. We find that performance expectations, actual expectations, and tenure affect CEO turnover in NCAA Division I-A college football, based on performance data from 102 Division I-A football programs over the period 1980-2004.

Keywords: CEO turnover; performance expectations; betting markets (search for similar items in EconPapers)
JEL-codes: D84 J44 J63 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2011-09-01
New Economics Papers: this item is included in nep-bec, nep-eff, nep-hrm, nep-lab and nep-spo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:albaec:2011_014

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