Ownership Structure and Top Management Turnover PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Ownership Structure and Top Management Turnover PDF full book. Access full book title Ownership Structure and Top Management Turnover by David J. Denis. Download full books in PDF and EPUB format.
Author: David J. Denis Publisher: ISBN: Category : Languages : en Pages :
Book Description
We report a significant negative relation between the fractional equity ownership of top executives and the likelihood of top management turnover. In addition, the relation between prior firm performance and the likelihood of turnover is statistically insignificant for firms in which the top executive owns more than 1% of the firm's shares. These findings suggest that managers become entrenched at very low ownership levels. Consistent with this interpretation, we find that the stock price reaction to a management change is significantly greater in firms in which the departing manager owns more than 1% of the firm's shares. Moreover, in these firms, the incoming manager's fractional ownership is typically less than 1% and the firm is subject to a higher rate of post-turnover corporate control activity. We also examine the influence of other aspects of ownership structure and find that turnover rates are higher in firms with unaffiliated blockholders and lower in firms with blockholders that are affiliated with incumbent managers.
Author: David J. Denis Publisher: ISBN: Category : Languages : en Pages :
Book Description
We report a significant negative relation between the fractional equity ownership of top executives and the likelihood of top management turnover. In addition, the relation between prior firm performance and the likelihood of turnover is statistically insignificant for firms in which the top executive owns more than 1% of the firm's shares. These findings suggest that managers become entrenched at very low ownership levels. Consistent with this interpretation, we find that the stock price reaction to a management change is significantly greater in firms in which the departing manager owns more than 1% of the firm's shares. Moreover, in these firms, the incoming manager's fractional ownership is typically less than 1% and the firm is subject to a higher rate of post-turnover corporate control activity. We also examine the influence of other aspects of ownership structure and find that turnover rates are higher in firms with unaffiliated blockholders and lower in firms with blockholders that are affiliated with incumbent managers.
Author: Benjamin Maury Publisher: ISBN: Category : Languages : en Pages :
Book Description
This paper empirically investigates how corporate governance forces and firm performance affect top executive turnover in Finnish listed companies. I document an increase in CEO, top management, and board turnover in response to poor stock price performance and operating income losses. The sensitivity of the relation between stock price performance and CEO turnover is significantly higher in firms with a two-tier board structure (when the CEO is not the Chairman), but significantly lower when the CEO or a board member is the controlling shareholder. These results suggest that both the ownership structure and the board design have implications for the disciplining of managers.
Author: Yuko Hisa Publisher: ISBN: Category : Languages : en Pages : 14
Book Description
Recently, Turkey has attracted investors' attention as one of the emerging countries like Asian or Latin American countries, and its high economic growth is expected to continue in the future. It is supported by the activity of private companies, and such enterprises have been listed on the Istanbul Stock Exchange (ISE) market since the 1990's. In this paper, we examine the role of corporate governance in top executive turnover in Turkey. We focus on the impact of the family company corporate system.As for the features of Turkish firms, we highlight the following three points; the ownership structure is remarkably concentrated, ownership and management is not separate but in many cases the founder family participates in management as for board members, the existence of a business group with bank where the founder family is positioned at the top of the pyramidal structure. As a result, we find that the corporate governance system works by top executive turnover in Turkey. We also see that the probability of turnover rises when a member of the founder family participates in management. However, the probability of turnover rises when ROE is negative for two years. This suggests the advantage of efficient family management.
Author: Jay Dahya Publisher: ISBN: Category : Languages : en Pages : 24
Book Description
This article investigates the impact that successful hostile and friendly takeovers have on the rates of top management change for U.K. target firms. The results shows that hostile takeovers are associated with a greater degree of both top executive and top team forced departure rates compared to that of friendly takeovers. Furthermore, prior to takeover, hostile targets have lower abnormal returns, lower profitability, higher debt, lower managerial ownership and a high ownership stake held by external block holders relative to friendly targets. The results give further support to the disciplining role of the hostile takeover.
Author: John S. Beasley Publisher: Edward Elgar Publishing ISBN: 1781005109 Category : Business & Economics Languages : en Pages : 553
Book Description
Research on executive compensation has exploded in recent years, and this volume of specially commissioned essays brings the reader up-to-date on all of the latest developments in the field. Leading corporate governance scholars from a range of countries set out their views on four main areas of executive compensation: the history and theory of executive compensation, the structure of executive pay, corporate governance and executive compensation, and international perspectives on executive pay. The authors analyze the two dominant theoretical approaches – managerial power theory and optimal contracting theory – and examine their impact on executive pay levels and the practices of concentrated and dispersed share ownership in corporations. The effectiveness of government regulation of executive pay and international executive pay practices in Australia, the US, Europe, China, India and Japan are also discussed. A timely study of a controversial topic, the Handbook will be an essential resource for students, scholars and practitioners of law, finance, business and accounting.
Author: Michael Firth Publisher: ISBN: Category : Languages : en Pages : 54
Book Description
Recent research has argued that political and regulatory environments have a significant impact on corporate governance systems. In particular, countries with poor investor protection laws and weak law enforcement have low levels of corporate governance that manifests itself in substandard financial performance, management entrenchment, and the expropriation of minority shareholders. One implication of this research is that China will have poor corporate governance and entrenched managers, as its legal system is relatively underdeveloped and inefficient. However, using data on top management turnover in China's listed firms, our results refute the prediction of entrenched management. We find evidence of very high turnover of company chairmen and there are many cases that we interpret to be forced departures. Our results show that chairman turnover is related to a firm's profitability but not to its stock returns. Turnover-performance sensitivity is higher if legal entities are major shareholders but the proportion of non-executive directors perversely affects it. We find no evidence that profitability improves after a change in chairman and this suggests that a firm's governance structure is ineffective as it is unable to recruit suitable replacements that can turn around its financial performance.
Author: Stephanie Brecht-Bergen Publisher: Logos Verlag Berlin GmbH ISBN: 3832546731 Category : Business & Economics Languages : en Pages : 226
Book Description
The author analyzes the multi-faceted phenomenon of top executive turnover from various theoretical angles and empirically shows how individual and organizational factors such as performance, compensation and gender relate to it. Managerial implications on how to deal with turnover in times of talent shortage are derived. The book contributes to turnover research in three distinct ways. From a corporate governance perspective, it inspects potential antecedents and consequences of top executive dismissal with a focus on firm performance consequences. Taking a labor economics view, it scrutinizes compensation structure as a likely antecedent of voluntary turnover. From an OB and HRM angle, it examines gender as a characteristic of top executives and possible antecedent of turnover.
Author: Piotr Bula Publisher: Wydawnictwo UJ ISBN: 8323371245 Category : Business & Economics Languages : en Pages : 265
Book Description
We believe that the world is standing on the very edge of the fastest industrial revolution ever. A revolution which will rapidly increase the efficiency of many production processes. Automation (both mechanical and the one happening with computer processes) will reduce the demand for human work and release a huge amount of time we can use for further development. With this book we try to provide the reader with information about various aspects of life and the socio-economic environment. For this purpose, we have invited authors representing the leading scientific research centers in Poland and specialists from foreign universities. Piotr Buła Bogdan Nogalski The monograph stands out from the publications related to change management in the context of entrepreneurial opportunities and flexibility of the organization. The authors attempt to integrate retrospective and prognostic approaches, so they not only assess the current status, but also point to challenges for management science. The work has been prepared by scholars whose authority in management sciences is undisputed. I positively assess the empirical and methodological layer of individual chapters of the monograph. Discussing the results of their scientific and research work, the authors presented the determinants of management processes described from the perspective of entrepreneurial opportunities and flexibility of the organization. Szymon Cyfert
Author: Sydney Finkelstein Publisher: Strategic Management ISBN: 0195162072 Category : Business & Economics Languages : en Pages : 480
Book Description
This book integrates and assesses the vast and rapidly growing literature on strategic leadership, which is the study of top executives and their effects on organizations. The basic premise is that in order to understand why organizations do the things they do, or perform the way they do, we need to deeply comprehend the people at the top-- their experiences, abilities, values, social connections, aspirations, and other human features. The actions--or inactions--of a relatively small number of key people at the apex of an organization can dramatically affect organizational outcomes. The scope of strategic leadership includes individual executives, especially chief executive officers (CEOs), groups of executives (top management teams, or TMTs); and governing bodies (particularly boards of directors). Accordingly, the book addresses an array of topics regarding CEOs (e.g., values, personality, motives, demography, succession, and compensation); TMTs (including composition, processes, and dynamics); and boards of directors (why boards look and behave the way they do, and the consequences of board profiles and behaviors). Strategic Leadership synthesizes what is known about strategic leadership and indicates new research directions. The book is meant primarily for scholars who strive to assess and understand the phenomena of strategic leadership. It offers a considerable foundation on which professionals involved in executive search, compensation, appraisal and staffing, as well as board members who evaluate executive performance and potential, might build their tools and perspectives.
Author: David J. Denis
Author: David J. Denis
Author: Benjamin Maury
Author: Tzu Ting Lin
Author: Yuko Hisa
Author: Jay Dahya
Author: John S. Beasley
Author: Michael Firth
Author: Stephanie Brecht-Bergen 
Author: Piotr Bula
Author: Sydney Finkelstein