Should They Stay or Should They Go? CEO Appointments and Performance in a Transitional Economy

Katarzyna Byrka-Kita (), Mateusz Czerwinski (), Stephen P. Ferris (), Agnieszka Pres-Perepeczo () and Tomasz Wisniewski ()
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Katarzyna Byrka-Kita: University of Szczecin, Poland
Stephen P. Ferris: Ball State University, Muncie, USA
Agnieszka Pres-Perepeczo: University of Szczecin, Poland
Tomasz Wisniewski: University of Szczecin, Poland

Czech Journal of Economics and Finance (Finance a uver), 2020, vol. 70, issue 2, 145-171

Abstract: This study examines the corporate operating performance surrounding CEO appointments from 2001-2013 to firms listed on the Warsaw Stock Exchange. We find that the decision to reappoint or to replace a CEO is preceded by a decline in corporate operating performance. We fail to find, however, improvements or stability in operating performance following either the replacement or reappointment of the incumbent CEO. The likelihood of CEO replacement is greater if the firm does not perform well in the period preceding the appointment. We conclude that there are inefficiencies or inadequacies in the corporate governance system of Polish publicly traded firms.

Keywords: CEO appointment; operating performance; turnover; internal control (search for similar items in EconPapers)
JEL-codes: G3 M12 M4 M51 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:70:y:2020:i:2:p:145-171

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