Firm Performance and Managerial Turnover: The Case of Ukraine

Bilyk Olga (), Grechaniuk Bogdana () and Murav'ev Aleksandr ()

EERC Working Paper Series from EERC Research Network, Russia and CIS

Abstract: The paper studies whether and how CEO turnover in Ukrainian firms is related to their performance. Based on a novel dataset covering Ukrainian joint stock companies in 2002-2006, the paper finds statistically significant negative association between the past performance of firms measured by return on sales and return on assets, and the likelihood of managerial turnover. While the strength of the turnover-performance relationship does not seem to depend on factors such as managerial ownership and supervisory board size, we do find significant entrenchments effects associated with ownership by managers. Overall, our analysis suggests that corporate governance in Ukraine operates with a certain degree of efficiency, despite the well-known lacunas in the country’s institutional environment. Our results are of particular interest in view of the ongoing changes in Ukrainian corporate law, and in particular, the recent enactment of Law on Joint-Stock Companies.

JEL-codes: G34 J40 L29 (search for similar items in EconPapers)
Date: 2009-11-06
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Persistent link: https://EconPapers.repec.org/RePEc:eer:wpalle:09/04e

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