CEO turnover in large banks: Does tail risk matter?
Sabur Mollah () and
Journal of Accounting and Economics, 2017, vol. 64, issue 1, 37-55
In a cross-country setting we show the probability of a forced CEO turnover in large banks is positively associated with idiosyncratic tail risk. This finding is strengthened the greater the competition in the banking industry and when stakeholders have more to lose in the case of distress. Overall, the exposure to idiosyncratic tail risk offers valuable signals to bank boards on the quality of the choices made by CEOs. In contrast, systematic tail risk becomes important for forced CEO turnovers only in the presence of a major variation in the costs this risk generates for shareholders and the organization.
Keywords: Tail risk; CEO turnover; Bank governance (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:64:y:2017:i:1:p:37-55
Access Statistics for this article
Journal of Accounting and Economics is currently edited by J. L. Zimmerman, S. P. Kothari, T. Z. Lys and R. L. Watts
More articles in Journal of Accounting and Economics from Elsevier
Bibliographic data for series maintained by Haili He ().