An Empirical Investigation on CEO Turnover in IT Firms and Firm Performance

Zhang, Peiqin; Wierschem, David; Mediavilla, Francis A. Méndez; Hong, Keejae P.

doi:10.58729/1941-6679.1269

Cited by 10 publications

(14 citation statements)

References 42 publications

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“…This study builds on two research streams within the CEO turnover and network analysis literature: (1) the association between CEO turnover and firm performance (Adams & Mansi, 2009;Boyne, James, John, & Petrovsky, 2011;Chen & Thompson, 2015;Davidson, Worrell, & Cheng, 1990;Denis & Denis, 1995;Eisfeldt & Kuhnen, 2013;He, Sommer, & Xie, 2011;Huson, Parrino, & Starks, 2004;Hutchison, 2014;Intintoli, Zhang, & Davidson, 2014;Lin, Wang, & Lin, 2008;Karaevli, 2007;Park & Shaw, 2013;Rhim, Peluchette, & Song, 2006;Shen & Cannella, 2002;Zhang, Wierschem, Mendez Mediavilla, & Hong, 2016). (2) The role of business network clusters on firm performance (Gulati, Nohria, & Zaheer, 2000;Peng & Luo, 2000;Zaheer & Bell, 2005).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Prior literature has extensively studied the effect of CEO turnover on Firm Performance (Bernard et al, 2018;Chen & Thompson, 2015;Eisfeldt & Kuhnen, 2013;Hambrick & Quigley, 2014;Huson et al, 2004;Hutchison, 2014;Intintoli et al, 2014;Lin et al, 2008;Karaevli, 2007;Park & Shaw, 2013;Rhim, Peluchette, & Song, 2006;Zhang et al, 2016). Findings from the literature have been mixed.…”

Section: Ceo Turnover and Firm Performancementioning

confidence: 99%

“…Park and Shaw (2013) indicated that turnover rates are negatively related to organizational performance. Zhang et al (2016) suggested that CEO turnover, both in general and in IT firms specifically, is negatively associated with firm performance. Chen and Thompson (2015) provided evidence that founder turnover was not unambiguously associated with superior performance.…”

Section: Ceo Turnover and Firm Performancementioning

confidence: 99%

“…As stated previously, some research pays attention to the short-term effects of CEO turnover announcements or interim successions on firm performance (Boyne et al, 2011;Chen & Thompson, 2015;Denis & Denis, 1995;Hutchison, 2014). Other research is more focused on the long-term trend effects of CEO turnover as it relates to firm performance (Eisfeldt & Kuhnen, 2013;Huson et al, 2001;Huson et al, 2004;Intintoli et al, 2014;Kim, 1996;Zhang et al, 2016). However, to the authors' knowledge, no prior literature distinguishes the impacts of CEO turnover on firm performance as discussed from a time perspective.…”

Section: Ceo Turnover and Firm Performancementioning

confidence: 99%

“…Lin et al (2008) suggested that a change of chairman implied that the organization power structure of the board of directors is unbalanced, and makes firms' personnel restless while reducing firm performance. The role of senior executives, such as the CEO, have been recognized as one of the critical assets that sustains an organization's competitive advantage (Zhang et al, 2016). Today's organizations are globally integrated enterprises with complex ties such as supply chains, share transactions, and integrated information technology systems across all internal and external business processes.…”

Section: Introductionmentioning

confidence: 99%

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CEO Turnover, Network Effects, and Firm Performance

Sun

Zhang

Wierschem

et al. 2022

International Journal of Organizational and Collective Intelligence

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This article applies network and organizational theory to examine the effect of CEO turnover on firm accounting and market performance in both short-term and long-term. In addition, this research investigates the moderating role of network effects using cluster analysis. Using a system generalized method of moments (GMM) estimation of panel data obtained from Compustat and S&P's Execucomp database, this study finds that it is less likely to have superior performance in the long-term for firms with frequent CEO turnover. While it is more likely to have better accounting performance over the short-term, but less likely to have superior market performance. This study further validates the moderating role of network effects. This article contributes to the research by providing new insights of CEO turnover effects on firm performance and investigating the moderation effect of network structure. The findings also provide practical suggestions for firms that experience frequent changes of their CEOs.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Ceo Turnover and Firm Performancementioning

confidence: 99%

Section: Ceo Turnover and Firm Performancementioning

confidence: 99%

Section: Ceo Turnover and Firm Performancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

CEO Turnover, Network Effects, and Firm Performance

Sun

Zhang

Wierschem

et al. 2022

International Journal of Organizational and Collective Intelligence

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Foreign ownership and firm performance in Sub-Saharan Africa

Webster

Okafor

Barrow

2022

Transnational Corporations Review

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Our study investigates the effects of foreign ownership on firm performance with respect to profitability, productivity, export intensity, and skills acquisition in Sub-Saharan African (SSA) countries. This is particularly important given that in the last 3 decades, stock of FDI has increased over 20,000% in SSA countries. To achieve the objectives of this paper, we employed firm-and country-level data from the World Bank Enterprise Surveys and the World Bank Development Indicators respectively. Results of the least squares dummy variable (LSDV) and propensity score matching (PSM) estimations showed that foreign ownership was positively associated with higher levels of financial profitability, productivity, exports, and skilled labour acquisition. Policy implications were deduced from the findings.

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Leadership Matters: Investigating the Association Between Nursing Home Administrator Turnover and Quality

Pradhan,

Ghiasi,

Weech-Maldonado

2024

The Gerontologist

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Background and Objectives Existing research has associated nursing home (NH) staff turnover with poor performance, yet the impact of nursing home administrator (NHA) turnover remains relatively understudied. This study aimed to explore the relationship between NHA turnover and NH quality, and to determine if this relationship was mediated by registered nurse (RN) turnover Research Design and Methods Utilizing data from multiple secondary sources, including the Care Compare: Skilled Nursing Facility Quality Reporting Program (SNF QRP) and LTCFocus.org, this study employed a longitudinal analysis covering the period 2021-2022 (n=19,645). The dependent variable was quality star ratings from SNF QRP, while the independent variable was NHA turnover, reflecting the number of administrators who left each facility annually. We used Baron and Kenny’s mediation testing method, incorporating two-way fixed effects (state and year level) with appropriate organizational and market level control variables. Results The results affirmed that NHA turnover negatively affected quality, decreasing the likelihood of a higher star rating by 14% with one departure and 25% with multiple departures (p=0.001). Additionally, NHA turnover correlated with an increase in RN turnover by 7% and 11%, respectively, for one and multiple departures (p=0.001). RN turnover fully mediated the impact of NHA turnover on quality, nullifying the direct effect of NHA turnover. Discussion and Implications The results of this study highlight the synergistic relationship between administrators and caregivers in NHs. To enhance NHA retention, NHs should improve compensation and benefits. Nonetheless, broader governmental support and interventions might be necessary to sustain these improvements.

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An Empirical Investigation on CEO Turnover in IT Firms and Firm Performance

Cited by 10 publications

References 42 publications

CEO Turnover, Network Effects, and Firm Performance

CEO Turnover, Network Effects, and Firm Performance

Foreign ownership and firm performance in Sub-Saharan Africa

Leadership Matters: Investigating the Association Between Nursing Home Administrator Turnover and Quality

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