URBAN LIVEABILITY AND CEO TURNOVER: EVIDENCE FROM CHINESE FIRMS

Sajid Anwar (), Beibei Hu (), Liping Li and Kai Wang ()
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Sajid Anwar: School of Business and Creative Industries, University of the Sunshine Coast, Sippy Downs Drive, Sippy Downs, QLD 4556, Australia
Beibei Hu: School of Business, Shanghai University of International Business and Economics, No. 1900 Wenxiang Road, Songjiang District, Shanghai 201620, P. R. China
Liping Li: School of Economics and Social Welfare, Zhejiang Shuren University, No. 8 Shuren Road, Hangzhou 310015, P. R. China
Kai Wang: Collaborative Innovation Center of China Pilot Free Trade Zone, Shanghai University of Finance and Economics, No. 777 Guo’ding Road, Shanghai 200433, P. R. China

The Singapore Economic Review (SER), 2025, vol. 70, issue 05, 1441-1463

Abstract: Using data from 2,744 listed non-financial firms located in 273 Chinese cities and municipalities during the period spanning 2003 to 2017, this paper examines the impact of changes in urban liveability on the voluntary turnover of CEOs. Employing the panel probit methodology, we find that enhancements in urban liveability result in a reduction in CEO turnover. Moreover, such enhancements also serve to partially mitigate the performance sensitivity of CEO turnover. In a disaggregated analysis, we find that improvements in urban liveability likewise decrease the likelihood of CEO turnover for foreign-owned firms, companies facing stronger external rivals, and those lacking government industrial policy support. Our work extends existing literature on the factors influencing CEO turnover within the framework of incomplete contract theory. Additionally, this paper offers a policy foundation for urban planners to effectively decrease the CEO turnover rate by enhancing urban liveability.

Keywords: Urban liveability; CEO turnover; firm performance sensitivity; heterogeneity analysis (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S0217590824500012

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