CEO TURNOVER AND FINANCIAL PERFORMANCE: EVIDENCE FROM TURKEY

Ayse Altiok-Yilmaz () and Elif Akben-Selcuk ()
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Ayse Altiok-Yilmaz: Bahcesehir University
Elif Akben-Selcuk: Kadir Has University

No 4306657, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: The impact of corporate performance on the likelihood of voluntary or disciplinary CEO turnover has been a central research topic in finance. To date, the majority of the studies in the area focused on developed countries and documented a negative relationship between the two variables. However, considering institution differences and different corporate governance mechanisms in emerging markets, the results could differ in other countries. The objective of the present study is to investigate the relationship between CEO turnover and financial performance in an emerging market, Turkey. The sample includes non-financial firms listed on Borsa Istanbul and the period of analysis covers the years 2005-2014. A firm-year is defined as a turnover year if there was a change in the name of the CEO as announced in the company news. The empirical results are consistent with prior literature and indicate that financial performance is negatively associated with the probability of CEO turnover. The effect size is stronger in the case of disciplinary turnovers and findings are robust to alternative performance measures. These results suggest that corporate governance mechanisms are not ineffective in Turkey.

Keywords: CEO turnover; financial performance; Turkey. (search for similar items in EconPapers)
Pages: 1 page
Date: 2016-11
New Economics Papers: this item is included in nep-ara, nep-bec, nep-cfn and nep-eff
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Published in Proceedings of the Proceedings of the 26th and the 27th International Academic Conference (Istanbul, Prague), Nov 2016, pages 1-1

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:4306657

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