Does frequent leadership changes influence firm performance? Insights from China
Does frequent leadership changes influence firm performance? Insights from China
复制标题
频繁的领导层变动是否会影响公司绩效？
DOI：
10.17811/ebl.10.3.2021.291-298
复制
发表时间：
2021
影响因子：
0.9
通讯作者：
M. Akbar
中科院分区：
文献类型：
--
作者：
A. Akbar;Xinfeng Jiang;Zeeshan Fareed;M. Akbar
这封信是首次尝试调查年内频繁的领导层变动与公司绩效之间的关系。我们分析了一年期间CEO出现频率如何影响中国上市公司的绩效指标。面板固定效应回归结果显示，CEO 更替导致以 ROA 和 ROE 衡量的企业绩效下降。而且，随着年度离职频率的增加，业绩下滑的程度也更加明显。使用 2SLS 替代计量经济学规范控制内生性后，这些结果仍然稳健。研究结果表明，频繁更换CEO不利于公司业绩。因此，CEO任期的稳定性对于维持和优化企业的财务绩效至关重要。
This letter is a first attempt to investigate the relationship between frequent leadership changes during the year and firm performance. We analyze how CEO frequency during one-year period impact performance indicators of Chinese listed firms. The results of panel fixed-effect regression reveal that CEO turnover leads to a decline in corporate performance measured by ROA and ROE. Moreover, with an increase in annual turnover frequency, the degree of performance decline gets more pronounced. These results remain robust after controlling for endogeneity using the alternate econometric specification of 2SLS. The study findings assert that frequent CEO changes are not conducive to firm performance. Hence, stability in the CEO tenure is essential to sustain and optimize financial performance of an enterprise.