Public governance, political connectedness, and CEO turnover: evidence from the transitional economy of China.

• Other Authors: Yuan, Qingbo.
• Format: Others
• Language: English; Chinese
• Published: 2008
• Subjects: Chief executive officers; Chief executive officers > China; Corporate governance; Corporate governance > China; Economic conditions; Politics and government
• Online Access: http://library.cuhk.edu.hk/record=b6074718; http://repository.lib.cuhk.edu.hk/en/item/cuhk-344351

Using a sample of firms listed in China's A-share stock market, this study investigates whether the regional institutions and CEO's political connectedness will affect the listed firms' hiring and firing decisions about CEOs, and what are the channels of these effects. I find that, for state-owned enterprises, politically connected CEOs are less likely to be nominated to firms in industries with more specific knowledge, with more competition, cross-listed in Hong Kong stock exchange, and in regions with stronger institutions. However, there is no such pattern for non-SOEs. Second, as a consequence, CEOs' political connectedness of CEOs in SOEs reduces the sensitivity of their turnover to firm performance for SOEs. There is no such political connectedness effect on CEO turnover-performance sensitivity in non-SOEs. Third, the reduction on turnover performance sensitivity is mitigated by stronger institutions. The additional analysis finds evidence partially explaining why the politically connected CEOs are less likely to be dismissed because of their poor performance, that is, SOEs with politically connected CEOs can (1) get more subsidies from the governments when their performance is poor, and (2) tend to hire more employees when the regions in which they locate suffer from severe unemployment problem. === Yuan, Qingbo. === Adviser: T.J. Wong. === Source: Dissertation Abstracts International, Volume: 70-06, Section: A, page: 2123. === Thesis (Ph.D.)--Chinese University of Hong Kong, 2008. === Includes bibliographical references (leaves 53-57). === Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web. === Electronic reproduction. [Ann Arbor, MI] : ProQuest Information and Learning, [200-] System requirements: Adobe Acrobat Reader. Available via World Wide Web. === Abstracts in English and Chinese. === School code: 1307.