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Providing a model for the impact of performance on the relationship between corporate governance mechanisms and the probability of firing the CEO
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E. E. Gorjian Mehlabani   , Ch. Zhang , H. Askeri , A. Javadpour |
| Department of Probability and Statistics, Guangzhou University, Guangzhou, China |
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Abstract: (254 Views) |
According to the agency theory and the separation of ownership from management, including the most important measures of a company is management changes. On the other hand, the cause of changing the executive’s managers because of their effectiveness should be a special place in accounting research. In that light, this study investigates the effect of performance on the relationship between corporate governance mechanisms and the probability of firing the CEO. In this research, the studied population included companies listed on the Tehran Stock Exchange from March 21st, 2008 to March 21st, 2017. The systematic elimination method was used to narrow down the sample down to 65 companies that were examined in a nine-year period. The Eviews package was used to investigate the validity of the hypotheses relying on the logistic regression method. The results of the hypothesis test showed that firm performance has a significant negative effect on the relationship of institutional ownership, independent directors, and entrenching with CEO replacement. And performance also has a significant positive impact on the relationship between major ownership and CEO change. In addition, the results show that performance has a significant negative impact on the relationship between ownership (private and public) with CEO change. The impact of private ownership is less severe than state ownership.
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| Keywords: Corporate Governance, Chief Executive Officer (CEO), Performance, State Ownership, Private Ownership |
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Full-Text [PDF 502 kb]
(38 Downloads)
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Type of Study: Research |
Subject:
Special
Received: 2023/09/12 | Accepted: 2023/12/12
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