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Type :Article
Subject :HD Industries. Land use. Labor
ISSN :2232-0032 / eISSN 0128-0481
Main Author :Dai, Bin
Additional Authors :
  • Peng, Cheng
  • Liu, Xing
Title :Can a powerful CEO affect the effectiveness of corporate governance? evidence from ceo turnover in Chinese state-owned enterprises
Hits :4
Place of Production :Tanjong Malim
Publisher :Fakulti Pengurusan dan Ekonomi
Year of Publication :2015
Notes :Vol. 5 (2015): Journal of Contemporary Issues and Thought (JCIT)
Corporate Name :Perpustakaan Tuanku Bainun
PDF Full Text :You have no permission to view this item.

Abstract : Perpustakaan Tuanku Bainun
The main purpose of this paper is to explore the impact of CEO power on the efficiency of corporate governance from the perspective of state-owned enterprises_ CEO turnover in China. Using data of listed SOEs from 2004- 2012, we find that: (1) CEO turnover is negatively correlated with company performance on the whole, yet the enhanced CEO power can reduce the possibility of being forcibly replaced due to the poor performance, showing that the power of CEO play a significant entrenchment role in the decisionmaking of executive turnover; (2) CEO turnover remarkably improves the company_s future performance. However, this promoting effect only appears after the turnover of CEO possessing less power; (3) Further studies also show that upgrading the administrative level and improving the institutional environment can inhibit the rent-seeking behavior of SOEs_ CEO. Our study is not only conducive to understanding the economic consequences of the power of SOEs_ chief executives, but also offers experiences and inspirations in terms of the policy-making on SOEs_ corporate governance and the mechanism reform of executive selection as well. Keywords CEO power; corporate governance; state-owned companies; CEO turnover

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