Department of Economics and Business Economics

Determinants of CEO Turnover in Publicand Private Firms in Denmark - CEO and Firm Characteristics

Research output: Working paperResearch

  • Carina Sponholtz, Denmark
  • School of Economics and Management
In this study we are the first to draw on longitudinal matched employer-employee data to study CEO turnover. Using this data we contribute tothe existing literature by examining the e¤ect of previously unstudied in-dividual characteristics on CEO turnover. Additionally, we are able toexamine CEO turnover across a variety of firm types that di¤er with re-spect to the corporate governance issues they face. Our simple methodol-ogy to define CEO turnover results in turnover rates similar to those foundpreviously. Our results indicate that CEO characteristics are an important factor in explaining CEO turnover. Finally, the inverse relationshipbetween firm performance and CEO turnover only exists in LLL firms(larger limited liability firms, both publicly and privately held), whereagency costs are assumed and found to be highest.In this study we are the first to draw on longitudinal matched employer-employee data to study CEO turnover. Using this data we contribute tothe existing literature by examining the effect of previously unstudied individual characteristics on CEO turnover. Additionally, we are able toexamine CEO turnover across a variety of firm types that di¤er with respect to the corporate governance issues they face. Our simple methodology to define CEO turnover results in turnover rates similar to those foundpreviously. Our results indicate that CEO characteristics are an important factor in explaining CEO turnover. Finally, the inverse relationshipbetween firm performance and CEO turnover only exists in LLL firms(larger limited liability firms, both publicly and privately held), whereagency costs are assumed and found to be highest.
Original languageEnglish
Place of publicationAarhus
PublisherInstitut for Økonomi, Aarhus Universitet
Number of pages34
Publication statusPublished - 2006

    Research areas

  • CEO turnover, Corporate governance, Ownership stru

See relations at Aarhus University Citationformats

ID: 2022807