Internal Monitoring Mechanisms and CEO Turnover: A Long-Term Perspective

Internal Monitoring Mechanisms and CEO Turnover: A Long-Term Perspective

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by Mark R. Huson , Robert Parrino , Laura T. Starks

Venue:	Journal of Finance, December 2001
Citations:	43 - 4 self

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Datum	Value	Source
TITLE	Internal Monitoring Mechanisms and CEO Turnover: A Long-Term Perspective	SVM HeaderParse 0.2
AUTHOR NAME	Mark R. Huson	SVM HeaderParse 0.2
AUTHOR AFFIL	Forum, University of British Columbia, University of Delaware, Emory University, 1998 Financial	SVM HeaderParse 0.2
AUTHOR NAME	Robert Parrino	SVM HeaderParse 0.2
AUTHOR AFFIL	Forum, University of British Columbia, University of Delaware, Emory University, 1998 Financial	SVM HeaderParse 0.2
AUTHOR NAME	Laura T. Starks	SVM HeaderParse 0.2
AUTHOR AFFIL	Forum, University of British Columbia, University of Delaware, Emory University, 1998 Financial	SVM HeaderParse 0.2
ABSTRACT	We report evidence on chief executive officer ~CEO! turnover during the 1971 to 1994 period. We find that the nature of CEO turnover activity has changed over time. The frequencies of forced CEO turnover and outside succession both increased. However, the relation between the likelihood of forced CEO turnover and firm performance did not change significantly from the beginning to the end of the period we examine, despite substantial changes in internal governance mechanisms. The evidence also indicates that changes in the intensity of the takeover market are not associated with changes in the sensitivity of CEO turnover to firm performance. STOCKHOLDERS RELY ON INTERNAL AND EXTERNAL monitoring mechanisms to help resolve agency problems that arise from the separation of ownership and control in modern corporations. Boards of directors and blockholders are important internal control mechanisms whereas the takeover market is a major source of external control. Both academicians and practitioners have	SVM HeaderParse 0.2
VENUE	Journal of Finance, December 2001	INFERENCE
VENUE TYPE	JOURNAL	INFERENCE
PAGES	2265--2297	INFERENCE
CITATIONS	40 found	ParsCit 1.0