CEO Turnover and Corporate Performance Relationship in Pre- and Post-IFRS Period: Evidence from Turkey

Journal of Business Economics and Management, Volume 13, Issue 3, 2012

Posted: 23 Jun 2011 Last revised: 2 Aug 2012

See all articles by M. Banu Durukan

M. Banu Durukan

Dokuz Eylul University Faculty of Business; Ljubljana University Faculty of Economics

Serdar Ozkan

American University of the Middle East

A. Fatih Dalkilic

Dokuz Eylul University Faculty of Business

Date Written: May 25, 2011

Abstract

This study investigates CEO turnover and corporate performance relationship as a measure of the effectiveness of a corporate governance system. The impact of different financial accounting regimes on the turnover/performance relationship is also analyzed. If systems replace poorly performing managers, they are considered as not ineffective. The results provide evidence that corporate governance systems with poor governance characteristics may not be ineffective, due to the existence of alternative governance mechanisms. The disciplinary CEO turnover is found to be more strongly associated with corporate performance compared to voluntary CEO turnover, whereas in the IFRS sub-sample the relationship is stronger with contemporaneous performance measures.

Keywords: CEO turnover, corporate governance, corporate performance, IFRS, Turkey, effectiveness

JEL Classification: M41, M44, M47

Suggested Citation

Durukan, M. Banu and Ozkan, Serdar and Dalkilic, A. Fatih, CEO Turnover and Corporate Performance Relationship in Pre- and Post-IFRS Period: Evidence from Turkey (May 25, 2011). Journal of Business Economics and Management, Volume 13, Issue 3, 2012 , Available at SSRN: https://ssrn.com/abstract=1870892

M. Banu Durukan

Dokuz Eylul University Faculty of Business ( email )

Izmir
Turkey

Ljubljana University Faculty of Economics ( email )

Ljubljana
Slovenia

Serdar Ozkan (Contact Author)

American University of the Middle East ( email )

250 St.
Block 3, Building 1
Egaila
Kuwait

A. Fatih Dalkilic

Dokuz Eylul University Faculty of Business ( email )

Faculty of Business
Tınaztepe Yerleskesi Buca
Izmir, 35160
Turkey
905056487555 (Phone)

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