Management Turnover Research Articles

The Influence of the Organisational Context on the Managerial Turnover- Performance Relationship

The present study performs a comprehensive examination of the organizational context of the relationship between managerial turnover and organizational performance. Relying on the human and social capital theoretical frameworks, we focus on the moderating role of employment systems, entity size, industry and location in this relationship. To test our hypotheses, we work with the company records of a multinational fashion retail group with more than 6.000 stores grouped into 8 different brands and 140.000 employees in more than 90 countries. In order to estimate these causal contextual effects of the relationship between voluntary managerial turnover and organizational performance we have designed a quasi-experiment using of propensity score matching (PSM) analysis. Our results show that the dysfunctional side of managerial turnover is significant for stores managed under primary employment systems, for brands operating with lower levels of service orientation, for countries with more restrictive employment protection legislation and for medium-sized stores. Implications both for research and practice are discussed in the light of the findings.

Cog in the wheel: Resource release and inter dependencies in adjustment routines

We characterize and test dynamic capabilities as a bundle of interdependent adjustment routines. Because each routine depends on others to realize its value, constraining one can create a bottleneck that traps other adjustment routines. We argue that such interdependencies are much more expansive in scope than suspected, linking multiple seemingly independent empirical phenomena. In testing our theory, we leverage the staggered adoptions of employment protection laws intended to affect one specific adjustment routine that acts on one type of resource: dismissing employees. The constraint, however, not only affects the contraction but also the expansion in labor and capital investments, acquisition, alliance, divestment, managerial turnover, and other adjustments taken by firms in responding to positive and negative performance feedback. Our findings raise caution in using instrumental variables and natural experiments that are presumed to affect only a specific variable of interest and trying to isolate a...

Does work-personal life interference predict turnover among male and female managers, and do depressive symptoms mediate the association? A longitudinal study based on a Swedish cohort

BackgroundIn the present study we used a longitudinal design to examine if work-personal life interference predicted managerial turnover, if depressive symptoms mediated the association, and if the relationships differed by gender.MethodsData were drawn from four waves (2010, 2012, 2014 and 2016) of the Swedish Longitudinal Occupational Survey of Health (SLOSH), a cohort of the Swedish working population. Participants who in any wave reported to have a managerial or other leading position were included (n = 717 men and 741 women). Autoregressive longitudinal mediation models within a multilevel structural equation modelling (MSEM) framework, in which repeated measures (level 1) were nested within individuals (level 2), were fitted to data. First, bivariate autoregressive and cross-lagged paths between the variables were fitted in gender stratified models. Secondly, a full gender stratified mediation model was built to estimate if the association between work-personal life interference and turnover was mediated through depressive symptoms. Gender differences in cross-lagged paths were estimated with multiple-group analysis. All analyses were adjusted for age, education, labour market sector, civil status and children living at home, and conducted in MPLUS 7.ResultsIn both genders there were significant paths between work-personal life interference and turnover. Depressive symptoms were, however, not found to mediate in the relationship between work-personal life interference and turnover. The models differed significantly between genders.ConclusionsEstablishing organisational prerequisites for good work-personal life balance among managers may be a means to retain both male and female managerial talent.

Priority-setting in health research in Iran: a qualitative study on barriers and facilitators

BackgroundPriority-setting is a complicated and time-consuming process; however, if appropriately conducted, it could efficiently divert resources to the most important studies. A considerable body of evidence indicates that priority-setting measures in health research taken so far in Iran have not satisfied decision-makers, policy-makers, funders, communities, or even researchers. This study was designed to explore the flaws of these measures and their deciding factors.MethodsWe conducted semi-structured interviews with 23 key participants and used a thematic data-analysis approach to analyse verbatim transcripts and documents. Our interviewees, who were skilful at conducting health research and worked as managers at different levels of the health system, were selected using a purposeful sampling. We asked about their experiences of priority-setting in health and relevant challenges and asked for recommendations. These semi-structured interviews were taped, transcribed and analysed in terms of content and themes using the MAXQDA10 qualitative data-analysis software.ResultsWith regard to priority-setting facilitators and barriers, four themes were extracted, namely managerial factors, structural factors, motivational factors, and process factors. Managers’ commitment, consideration of intellectual property, compliance with superordinate rules, and provision of a definition of reliable criteria were among the facilitators. The rapid turnover of managers, inefficiency of criteria for faculty promotion, and disregard of appeal mechanisms were examples of the barriers.ConclusionIt is important to consider appropriate regulations and motivations to provide research priorities and divert scarce resources to them. In addition, it is necessary to improve the knowledge and skills of researchers and research administration offices on priority-setting methods, thereby enhancing priority-oriented research projects.

A Study on Factors Influencing Mutual Fund Portfolio Performance

Mutual fund portfolio managers do not always meet performance expectations, resulting in loss of capital reserves. Out of 3,612 U.S. based open-ended mutual funds, the risk-adjusted performance of 2,890 (80%) failed to meet the S&P 500 performance between the year 2006 to 2016. Grounded in Markowitz's modern portfolio theory, this correlational study examined the relationship between mutual fund class type, portfolio turnover, fund longevity, management turnover, and annual fund risk-adjusted performance. Archival data were collected from 88 U.S. based equity mutual funds companies. The results of the multiple regression analysis indicated the model as a whole was able to significantly predict annual fund risk-adjusted performance for the 5-year period ending 2016, F (4, 83) = 3.581, p = .010, R2 = .147. In the final model, mutual fund class type and portfolio turnover were statistically significant with mutual fund class type (ß= .249, t = 2.302, p = .024) accounting for a higher contribution to the model than portfolio turnover (ß = .238, t = 2.312, p = .023).

Enhancing Chemotherapy Capabilities in Rural Hospitals: Implementation of a Telechemotherapy Model (QReCS) in North Queensland, Australia.

The Queensland Remote Chemotherapy Supervision (QReCS) model enables rural nurses to administer chemotherapy in smaller rural towns under supervision by health professionals from larger centers using telehealth. Its implementation began in North Queensland, Australia (population, 650,000), in 2014 between two regional cancer centers (Townsville and Cairns as primary sites) and six rural sites (125 to 1,000 kilometers from primary sites). Our study examined the implementation processes, feasibility, and safety of this model. Details of implementation and patients' clinical details for the period of 2014 to 2016 for descriptive analysis were extracted from telechemotherapy project notes and oncology information systems of North Queensland, respectively. After a successful pilot study in Townsville Cancer Centre, statewide rural and cancer networks of Queensland Health, in collaboration with clinicians and managers across the state of Queensland, developed the QReCS model and a guide for operationalizing it. QReCS was implemented at six sites from 2014 to 2016. Main enablers across North Queensland included collaboration among clinicians and managers, availability of common electronic medical records, funding from Queensland Health, and installation of telehealth infrastructure by statewide telehealth services. Main barriers included turnover of senior management and nursing staff at two rural towns. Sixty-two patients received 327 cycles of low- to medium-risk chemotherapy agents. Rates of treatment delays, adverse events, and hospital admissions were similar to those in face-to-face care. Implementation of the QReCS model across a large geographic region is feasible with acceptable safety profiles. Leadership by and collaboration among clinicians and managers, adequacy of resources and common governance are key enablers.

The effects of internal board networks: Evidence from closed-end funds

Recent literature emphasizes the importance of a director's external network of social connections. I use a sample of closed-end funds to show that internal, within-board connections are also significant determinants of shareholder value. I find that boards with shared education, employment, and family backgrounds exhibit lower market values, higher expense ratios, higher director compensation levels, and an increased likelihood of financial misrepresentation. Director turnover is lower within these boards, and new director appointments are more likely to share connections with incumbent directors. I conclude that internal board networks negatively impact a firm's governance environment and overall monitoring quality.

Knowledge transfer and managers turnover: impact on team performance

Purpose The paper aims to investigate the emerging issue of knowledge transfer and organisational performance. The purpose of this paper is to investigate the importance of knowledge transfer in obtaining high and positive results in organisations, in particular, studying the role of managers’ skills transfer and which conditions help to achieve positive performance. Design/methodology/approach The research analyses 41 cases of coaches that managed clubs competing in the major international leagues in the 2014–2015 season and that moved to a new club over the past five seasons. The authors employ a qualitative comparative analysis (QCA) methodology. According to the research question, the outcome variable used is the team sport performance improvement. As explanatory variables, the authors focus on five main variables: the history of coach transfers; the staff transferred; the players transferred; investments in new players and the competitiveness. Findings The overall results show that when specific conditions are realised simultaneously, they allow team performance improvement, even if the literature states that the coach transfers show a negative impact on outcomes. Interestingly, this work reaches contrasting results because it shows the need for the coexistence of combinations of variables to achieve the transferability of managers’ capabilities and performance. Originality/value The paper is novel because it presents a QCA that tries to understand which conditions, factors and contexts help knowledge to be transferred and to contribute to the successful run of organisations.

The causes and consequence of restatements in Indonesia

This study examines the causes and consequence of financial restatements in Indonesia. The first part focuses on the impact of corporate governance on restatements. Thirty six restating firmsand thirty four nonrestating firms were collected during 2010-2014. Using logistic regression, the results show that audit committeewith financial expertise is negatively related to financial restatements. On the other hand, no significant results found for board of commissioners and institutional ownership.The second part of this studyfocuses on the impact of financial restatement on management turnover. Management turnover refers to the likelihood of chief director (president director) and directors losing their jobs in 24 month periods after financial restatement. The results show that restating firms executives are more likely to lose their jobs than their counterpart in nonrestating companies. More specifically, 79% of restating companies changed their executives compares to only 38% of non-restating firms. The results of this paper would be a warning for managers to credibly report financial statements in accordance with sound accounting policies because financial restatements may cause managers to lose his job. In addition, the results are beneficial for policy makers in setting the rules to promote good corporate governance. This study determines management turnover by observing annual report. If the composition of executives in current year differs from last year, then it is decided that there has been a management turnover regardless of the causes. Subsequent research should isolate management turnover causing by other factors such as retirements. This is crucial to minimize the impact of extraneous variables.

The Effects of Internal Board Networks: Evidence from Closed-End Funds

Recent literature emphasizes the importance of a director’s external network of social connections. I use a sample of closed-end funds to show that internal, within-board connections are also significant determinants of shareholder value. I find that boards with shared education, employment, and family backgrounds exhibit lower market values, higher expense ratios, higher director compensation levels, and an increased likelihood of financial misrepresentation. Director turnover is lower within these boards, and new director appointments are more likely to share connections with incumbent directors. I conclude that internal board networks negatively impact a firm’s governance environment and overall monitoring quality.

Investor Myopia and CEO Turnover

AbstractWe find that Chief Executive Officer (CEO) turnover is significantly higher and considerably less sensitive to performance in firms with short investor horizons. Decisions to dismiss a CEO lead to worse operating performance, which is even poorer when investors have short horizons. Furthermore, new managers respond to investor short‐termism by increasing industry‐adjusted capital expenditures while maintaining R&D and patenting activity. In addition, in firms with short‐horizon investors, total risk increases around forced CEO turnovers, largely because of an increase in idiosyncratic risk. The evidence is consistent with short‐term investors distorting corporate policies of firms through their influence on top management turnover.

Why Ownership Matters? Entrepreneurship and the Restructuring of Enterprises in Central Europe

This paper, based on a study of mid-sized firms in the Czech Republic, Hungary, and Poland, seeks to explain the reasons behind the marked impact of ownership on firm performance which has been observed in a number of studies in Eastern Europe and other parts of the world. Focusing in particular on the differential impact of ownership on revenue and cost performance, the paper argues that privatized firms controlled by outside investors are more entrepreneurial than those controlled by corporate insiders or the state. The paper provides evidence that all state and privatized firms in transition economies engage in similar types of restructuring, but that product restructuring by firms owned by outsider investors is significantly more effective (in terms of revenue generation) than that by firms with other types of ownership. The paper also examines the impact of managerial turnover on revenue performance, as well as differences among managers of firms with different types of ownership, and concludes that the more entrepreneurial behavior of outsider-owned firms is due primarily to incentive effects, rather than human capital effects, of privatization. More specifically, the authors argue that the success of outsider-owned firms is due to their greater readiness to accept risks (as evidenced by the higher variance of the revenues generated by restructuring) and a lesser need to defend, and account for, their managerial decisions.

English

Project management is one of the most important and poorly understood areas of management. Delays and cost overruns are common in projects such as construction, power generation, defense, software, product development, etc. Project management is affected by problems relating to costing and scheduling. Changes in the design of customer creates costly ripple effects which in turn lead to delay and disruption throughout an entire organization. In most cases, errors made earlier in engineering projects are discovered close to the end which may require costly rework, expediting, overtime, hiring, schedule slippage or reductions in project scope or quality. Poor profitability, loss of market share and reputation, increased turnover of management and workforce, lower productivity and higher costs are some of the effects of such errors. Other consequences include divisive and costly ligation between customers and contractors over responsibility for overruns and delays. This paper describes in brief, the relevance of modeling and simulation in the management of engineering projects with a case study in the oil and gas industry. Key words: Engineering management, modeling, project management, simulation applications, facility management.

FAKTOR-FAKTOR PELUANG PADA PERUSAHAAN PERUSAHAAN YANG TERKENA DAMPAK KRISIS GLOBAL

This research examines what factors that can increase a company’s survival probability. Thirty financial distress companies in the years 1997-2005 with insolvency type were observed. At the end of 2005, as much as 53,33% companies could survive as an independent company. The data were examined relying on logistic regression. The covariates are operating performance, president director turnover, company’s age, and creditor equity stake. The dependent variable is the company status. Survival is positively affected by its operating performance. The only other factor systematically increasing company’s survival probability is the willingness of creditors to take an equity stake in the companies. Almost of all creditor equity stake in financially-distressed companies was executed by foreign creditor. President director turnover when the distress and company’s age did not increasing company’s survival. Keywords: survival probability, financial distress, and creditor equity stake

Accelerating time

Using a legitimacy lens, we theorize that changes in the firm’s board of directors parallel the evolving stakeholder audience that accords legitimacy to the firm—a key resource to the firm’s survival. Powerful new stakeholders post- initial public offering (IPO) such as the listing exchange and the securities regulators are anticipated to impact board gender diversity through their regulatory pressure, while pre-IPO investors such as venture capitalists are reducing their equity positions and thus providing opportunities for director turnover. At the same time, the firm is increasing in size and visibility, building additional sociocultural legitimacy pressures for increased gender diversity. While prior research centers on the effect of different types and intensity of legitimacy pressures on board characteristics, we explore how changes in the question of firms’ legitimacy “to whom” affects board composition, that is, we examine the comparative effect of regulation and society on board composition. We test our hypotheses by analyzing panel data for all North American technology firms doing IPOs on the NASDAQ exchange during a 12-year time frame between 1997 and 2011. Our analysis shows that regulation, although not explicitly directive, can play a key role in accelerating board gender diversity. Implications for future research on corporate governance and managerial and policy takeaways complete this article.

Is institutional investor a supervisor or cooperator?

PurposeThe purpose of this paper is to discuss whether top management will assume their liabilities especially when financial restatement occurs, and,based on the “effective supervision theory” and “strategic cooperation theory,” to examine whether an institutional investor is a supervisor or a cooperator considering the management turnover caused by financial restatement in the companies.Design/methodology/approachUsing a sample of the A-share-listed companies from year 2010 to year 2014 and dividing financial restatement into fraudulent financial restatement and other financial restatement, the authors examine the relationship between financial restatement and abnormal management turnover, which usually is related to the management integrity or capacity. By using group test methods, the authors test the influence of the institutional investors’ shareholding on the relation between financial restatements and management turnover.FindingsThis paper finds that financial restatement can result in abnormal management turnover, especially the fraudulent financial restatement. The institutional investors usually are supervisors but when the shareholding of institutional investor is too high and the management turnover results from fraudulent financial restatement, the institutional investors may become cooperators with management in the companies. Besides, the institutional investors play the supervisory function more significantly in non-state-owned enterprises.Originality/valueThis paper expands literature of the institutional investors in the corporate governance area and provides a basis for future research in the area of the institutional investors’ governance effect. It divides financial restatements into fraudulent financial restatement and other financial restatement and examines the relationship between financial restatement and abnormal management turnover so as to provide evidence about whether the management will assume their responsibilities when there is financial restatement in the company. It also tests whether the institutional investors will play supervisor’s or cooperator’s function in state-owned and non-state-owned enterprises.

Going-Concern Opinions and Corporate Governance

This paper looks into the issuance of auditor’s going-concern opinions and investigates how it triggers subsequent changes in corporate governance, specifically, the corporate control, executive compensation and management turnover. Using a difference-in-difference approach with the exogenous shock of Auditing Standard No. 5 (AS5) in 2007, we find that going-concern opinion leads to the decrease in blockholder ownership and institutional ownership, the reduction in CEO’s cash compensation and total compensation, and the increase in the turnovers of top executives and auditors, indicating strong monitoring function of the auditors.

Transparency and firm innovation

Firm innovation drives both firm competitiveness and economic growth. Constructing a novel firm-patent panel database from 29 countries, I find that transparency directly boosts innovative effort by reducing managerial career concerns. This effect operates through transparency's implicit contracting role: it reduces the sensitivity of management turnover to poor innovative output. Transparency also increases innovative efficiency through its governance role in facilitating efficient allocation of R&D capital. Nonetheless, the benefit of transparency is fully offset in environments with greater proprietary cost. These findings illuminate the unique roles and mechanisms of transparency in promoting innovation incentives and outcomes.

Analysis of Factors Affecting Manufacturing Companies in Indonesia Performing a Switching Auditor

This study aims at analyzing the influence of the Public Accountant Firms Size, Size of Company, Financial Distress, Audit Opinion and Management Turnover toward Auditor Switching. The population of this study is a manufacturing company listed on the Indonesia Stock Exchange during the period 2011-2015 consisting of 134 companies. The sample was obtained by purposive sampling technique which resulted in the sample of 26 companies. Methods of data analysis using logistic regression and SPSS 21 using data and other information obtained from Annual Report. Results of this study shows that the Public Accountant Firms Size and Management Turnover have significant impact toward auditor switching, size of company have influence auditor switching. Financial distress and audit opinion did not effect auditor switching significantly. The value of Nagelkerke R Square is 0.283. conclusions of this study is the Public Accountant Firms Size and Management Turnover have significant impact toward auditor switching, size of company have influence auditor switching. Financial distress and audit opinion did not effect auditor switching significantly.

Do Management Interventions Last? Evidence from India

We revisited Indian weaving firms nine years after a randomized experiment that changed their management practices. While about half of the practices adopted in the original experimental plants had been dropped, there was still a large and significant gap in practices between the treatment and control plants, suggesting lasting impacts of effective management interventions. Few practices had spread across the firms in the study, but many had spread within firms. Managerial turnover and the lack of director time were two of the most cited reasons for the drop in management practices, highlighting the importance of key employees. (JEL D22, D24, L67, L84, M11, O14)