The relationship between CEO changes and firm performance: The moderation effect of family business

• Main Authors: Jia-Syuan Hong, 洪嘉萱
• Other Authors: Kuo-Pin Yang
• Format: Others
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/2dfaq8

碩士 === 國立東華大學 === 管理學院高階經營管理碩士在職專班 === 104 === This study aims to investigate the relationship between CEO changes and firm performance in the context of business group. Three hypotheses are proposed: (1) poor firm performance results in CEO changes; (2) CEO changes improve or deteriorate subsequent firm performance; and (3) family governance moderates the relationship between CEO changes and subsequent firm performance. This study uses 556 Taiwanese listed companies affiliated with business groups as the sample covering the time period between 2011 and 2014 to test the hypotheses. The empirical results show that there is a stronger tendency to change CEOs as firm performance is getting poorer. Nevertheless, more frequent changes of CEOs result in poorer firm performance and this negative relationship becomes stronger in family-owned businesses. The findings of the study significantly contribute to the debate of the literature regarding CEO changes and performance, and suggest important implications to managerial practice.