The purpose of this paper is to investigate how the turnover‐performance relation depends on the proportion of outside directors and institutional ownership concentration and to explore the relative roles of accounting‐ and stock‐based performance measures in the process of CEO dismissals. No evidence of effective board monitoring was found. On the other hand, evidence of institutional shareholder activism was found. In particular, when institutional concentration is high, the turnover‐performance link is more negative in relation to stock returns but less negative in relation to accounting performance. This is consistent with institutional investors using a richer set of information than that contained in reported accounting earnings.

Are boards and institutional investors active monitors? Evidence from CEO dismissal

Florou, Annita;Pope, Peter
2008

Abstract

The purpose of this paper is to investigate how the turnover‐performance relation depends on the proportion of outside directors and institutional ownership concentration and to explore the relative roles of accounting‐ and stock‐based performance measures in the process of CEO dismissals. No evidence of effective board monitoring was found. On the other hand, evidence of institutional shareholder activism was found. In particular, when institutional concentration is high, the turnover‐performance link is more negative in relation to stock returns but less negative in relation to accounting performance. This is consistent with institutional investors using a richer set of information than that contained in reported accounting earnings.
2008
2013
Florou, Annita; Pope, Peter
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/4018788
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