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Article: Corporate performance and CEO turnover: the role of performance expectations. (chief executive officer)
- Article from:
- Administrative Science Quarterly
- Article date:
- March 1, 1991
- Author:
CopyrightCOPYRIGHT 1991 Cornell University, Johnson Graduate School. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Corporate Performance and CEO Turnover: The Role of Performance Expectations This paper proposes that the inconsistent findings in previous studies of the relationship between corporate performance and CEO turnover may be due to insufficient attention to the type of performance indicator used by the individuals responsible for making CEO turnover decisions, namely, the board of directors. We argue that the board develops expectations of corporate performance, which it then uses to judge the CEO's performance. The study reported here analyzes financial analysts' forecasts of corporate performance, as a surrogate for the expectations board members could be expected to have, ...
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