Officer Turnover Research Articles

Corporate governance, CEO turnover and say on pay votes

Purpose The purpose of this study is to investigate how compensation committee structure or characteristic impacts say on pay (SOP) voting dissent and the impact of SOP dissent on chief executive officer (CEO) turnover. Design/methodology/approach The authors use corporate governance and SOP data to test the relationships amongst variables. Additional analysis is performed using one-to-one propensity-score matched samples. Findings The authors find that firm-years with at least a female member present on the compensation committee are associated with lower SOP dissent. The authors find mixed results of the impact of SOP dissent on CEO turnover. Practical implications This paper suggests that diversity on the compensation committee, particularly the presence of at least a female member on the committee, serves as an important determinant of SOP voting outcome in the USA. The paper provides policymakers and practitioners with insights into factors influencing SOP voting outcomes and implications of SOP dissent for firms. Originality/value The findings of this paper contribute to the corporate governance literature by enhancing the understanding of the role of the compensation committee as it relates to SOP dissent and effect of SOP dissent on CEO turnover.

The effect of information technology (IT) material weaknesses in internal control on chief financial officer (CFO) turnover

AbstractThis study examines the relationship between CFO turnover and adverse SOX Section 404 opinions relating to IT material weaknesses over a 4‐year period after implementation of SOX 404 requirements. Prior research has shown that IT material weaknesses in internal controls are associated with higher audit fees than are other types of material weaknesses. Prior research also suggests an association between poor financial performance and CFO turnover. The results of this study show that companies with IT related material weaknesses are more likely to have more CFO turnover relative to companies with non‐IT related material weaknesses. These results contribute to the stream of research exploring the implications of IT material weaknesses in organizations.

The impact of chief executive officer turnover on strategic change: a model of mediating effect and joint moderating effect

PurposeThe purpose of this paper is to empirically analyze the impact of chief executive officer (CEO) turnover on strategic change and explore the mediating role of organizational slack between them, as well as the moderating role and joint moderating role of top management team (TMT) external social network, ownership nature and industry type.Design/methodology/approachBased on the upper echelons theory, resource allocation theory and structuration theory, this paper takes the unbalanced panel data of A-share listed companies in Shanghai and Shenzhen Stock Exchanges of China from 2001 to 2018 as the research sample, uses ordinary least squares (OLS) regression method and fixed effect model to study the relationship between CEO turnover and strategic change, and focuses on the mediating mechanism and moderating mechanism between them.FindingsThe authors find that CEO turnover is positively related to strategic change. When a CEO turns over, a new CEO will initiate strategic change. Precipitation organizational slack plays a mediating role between CEO turnover and strategic change. Non-precipitation organizational slack has no mediating effect between CEO turnover and strategic change, which is embodied as “suppressing effects.” When the non-precipitation organizational slack variable is controlled, the impact of CEO turnover on strategic change will be enhanced. TMT external social network, ownership nature and industry type all negatively moderate the relationship between CEO turnover and strategic change. TMT external social network and ownership nature have a joint moderating effect between CEO turnover and strategic change. When TMT external social network is small, CEO turnover has a positive effect on strategic change in both state-owned enterprises and non-state-owned enterprises, but the promotion effect is stronger in non-state-owned enterprises. When TMT external social network is large, the positive effect of CEO turnover on strategic change in state-owned enterprises is from strong to weak, but in the non-state-owned enterprises is from weak to strong. TMT external social network and industry type have a joint moderating effect between CEO turnover and strategic change. When TMT external social network is small, CEO turnover has a positive impact on strategic change in high-tech enterprises and non-high-tech enterprises, but the promotion effect is stronger in non-high-tech enterprises. When TMT external social network is large, the positive impact of CEO turnover on strategic change in high-tech enterprises is from strong to weak, but in the non-high-tech enterprises is from weak to strong.Originality/valueOn the basis of previous studies, this paper further expands the research scope of the mechanism of CEO turnover on strategic change, echoing the research arguments of relevant scholars. At the same time, the research results reveal the mechanism of organizational slack, TMT external social network, ownership nature and industry type in the relationship between CEO turnover and strategic change, and further deepen the application of upper echelons theory, resources allocation theory and structuration theory in China. In addition, the research conclusions of this paper also provide reference value for Chinese enterprises in carrying out strategic change, promoting enterprise transformation and improving the level of corporate governance, and help to enhance the understanding and attention of Chinese enterprises to CEO turnover, organizational slack, TMT external social network, strategic change and corporate governance under the background of high-quality economic development.

Employee Turnover in the front office of a Resort and Convention Hotel

Employee Turnover in the front office of a Resort and Convention Hotel

The Relationships Between Resilience, Job Satisfaction, and Anticipated Turnover in CNOs

Rising chief nursing officer (CNO) turnover remains a topic of professional discussion. Leader stability ensures nursing excellence in a frenetic, complex, highly networked, portable, and technological era. When nurse executives vacate their role, the turnover disrupts the practice environment, threatening clinical and cultural performance. A paucity of evidence exists on the components of CNO turnover. Findings from a national research study reported resilience and job satisfaction may work synergistically to reduce anticipated turnover, providing insight on CNO role tenure. Rising chief nursing officer (CNO) turnover remains a topic of professional discussion. Leader stability ensures nursing excellence in a frenetic, complex, highly networked, portable, and technological era. When nurse executives vacate their role, the turnover disrupts the practice environment, threatening clinical and cultural performance. A paucity of evidence exists on the components of CNO turnover. Findings from a national research study reported resilience and job satisfaction may work synergistically to reduce anticipated turnover, providing insight on CNO role tenure. Noreen Bernard, EdD, RN, NEA-BC, FAAN, is a Chief Nursing Officer at University of Colorado Health in Erie, Colorado. She can be reached at [email protected]

Creating Guardians or Warriors? Examining the Effects of Non-Stress Training on Policing Outcomes

High-profile fatal police shootings of persons of color in recent years have led some to propose changes in the ways that police officers are trained to reduce violence in interactions between officers and citizens. This article explores the impact of a non-stress-oriented training model that some police academies have adopted as an alternative to traditional militaristic training models. We integrate multiple theoretical perspectives to develop the expectation that training interventions will have a significant impact on the nature of police/citizen interactions only when turnover of officers is sufficiently high. Results from analyses of 133 middle- to large-sized municipal police departments in 2013 suggest that non-stress training is significantly associated with reductions in use of deadly force by officers in those departments where recruits trained under such regimes make up a larger portion of the force. We do not find a significant direct or moderated effect on the number of police injured in confrontations with citizens or in the prevalence of discretionary arrests.

Seguridad Ciudadana en un Municipio Limeño: Análisis de los Resultados del Plan Local, 2017-2018

El artículo tuvo como objetivo general comprobar los resultados alcanzados en la ejecución del plan local de seguridad ciudadana, en un municipio limeño, 2017-2018. El tipo de investigación fue participativa, enfoque cualitativo y un diseño de estudio de casos. Se recogieron las entrevistas de un comisario policial de distrito, de un experto en temas de asuntos policiales, de un empresario víctima de hechos delictivos y de un ex miembro dirigencial del Comité de Seguridad ciudadana del Distrito. Los principales hallazgos encontrados fueron: falta de compromiso y responsabilidad de los representantes del Comité Local de Seguridad Ciudadana, alto índice de inseguridad en la zona, robos y asaltos que afectan los negocios, falta de efectivos policiales y serenos, alta rotación de comisarios, demora en la capacidad de respuesta de la policía ante la denuncia de un hecho delictivo e inmigración descontrolada. Las principales conclusiones fueron: nivel de eficacia de los planes de seguridad ciudadana solo alcanzaron un nivel valorativo medio de (58.34%), inadecuado sistema de control del plan local de seguridad ciudadana e incumplimiento de las categorías apriorísticas contrastadas.

Impact of Chief Executive Officer (CEO) Succession Policy on CEO Turnover Announcement in Malaysia

This paper presents a fresh perspective on chief executive officer (CEO) turnover, where the impact of CEO turnover on firm value is analysed based on whether the removal is planned or unplanned. A total of 146 announcements for ten years in Malaysia is examined using an event study method. The results indicate that, in general, CEO turnover announcements cause a significant reaction due to changes in the firm’s investment decisions. Specifically, a significant positive impact exists when CEO turnover occurs as planned. In a planned turnover, the negative news of the removal of the CEO is immediately minimised with the positive news of a CEO appointment, indicating the positive impact of establishing a CEO succession plan on firm value. This finding adds new knowledge to the current literature and allows policymakers to examine the establishment of a CEO succession policy.

How Does Forced-CEO-Turnover Experience Affect Directors?

AbstractWe study changes in independent director behavior and labor-market outcomes after the experience of a forced Chief Executive Officer (CEO) turnover. We find that independent directors are more willing to fire CEOs of underperforming firms, hire outside CEOs after a firing, and encourage better board-meeting attendance by fellow directors. We also find that the shareholders of poorly performing firms react positively when experienced directors join the board. It does come with a small cost for directors, in terms of additional directorships, although the cost is not as great as that for directors who do not fire the CEO of a poorly performing firm.

CEO Turnover and Accounting Earnings: The Role of Earnings Persistence

Although earnings persistence should have a nontrivial impact on chief executive officer (CEO) turnover decisions, prior studies have paid little attention to the role of earnings persistence in CEO turnover decisions. This study examines the effect of earnings persistence on the sensitivity (i.e., the negative relation) of CEO turnover to earnings performance. First, we find that the sensitivity of forced CEO turnovers to earnings performance is greater when earnings are more persistent. We also show that among numerous earnings attributes, earnings persistence is the most direct and dominant attribute in explaining CEO turnover-earnings sensitivity. Further, when the effect of earnings persistence on CEO compensation-earnings sensitivity is weak, the effect of earnings persistence on CEO turnover-earnings sensitivity is stronger, suggesting that the executive discipline system substitutes for the compensation system when earnings persistence is neglected by compensation policies. Overall, our findings suggest that earnings persistence plays a crucial role in CEO turnover decisions by elevating the board’s knowledge on the future performance implications of current earnings. Finally, the role of persistence is even more crucial when it is neglected by executive compensation policies. This paper was accepted by Shiva Rajgopal, accounting.

A Gendered Career Stage Model to Explore Turnover Intent Among Correctional Officers

Understanding the factors that lead to correctional officer (CO) turnover intent is vital. Using a gendered career stage model, this study focused on male and female CO similarities and differences in workplace variable effects on turnover intent across career stages. The results indicated that organizational commitment was a consistent predictor of turnover intent for all correctional officers at all career stages, and, at various career stages, quality of supervision, coworker support, and safety concerns affected both males and females. Male officers were more likely to leave at all career stages, with the impact of job stress and role ambiguity influencing male turnover intent.

CEO Diversity, Political Influences, and CEO Turnover in Unstable Environments: The Romanian Case

This work expands the literature on a less studied topic, the Chief Executive Officer (CEO) turnover in post-communist economies, analyzed during an unstable and ambiguous economic and financial environment. For the period 2005–2010, the results indicate the political inference in CEO turnover decision for the Romanian listed companies. In this period, with great turmoil in the economy determined by the financial crisis of 2008, we also find that CEO gender helps to explain the probability of changing the CEO. Moreover, this paper empirically tests if the financial and corporate governance determinants that are validated in the existing literature work for the Romanian listed companies. We reinforce that CEO turnover decision is negatively related to accounting-based performance. We find evidence of the “voting with their feet” behavior of institutional investors, and of the lack of Board of Directors monitoring. The CEO–Chairman duality and the controlling power of the largest shareholder act as entrenchment mechanisms.

Executive compensation and firm performance: Evidence from cross‐listed AH‐share firms

AbstractWe apply sensitivity of executive compensation to firm performance as an effective measurement of corporate governance to examine the bonding mechanism among the cross‐listed Chinese firms between 2005 and 2017. Our sample covers the nonfinancial firms listed on both China and Hong Kong stock exchanges (AH‐share firms) and firms in China only (A‐share firms). We find that AH‐share firms have much higher sensitivity of executive compensation to firm performance than A‐share firms. However, the bonding effect only exists when executive cash compensation and firm accounting performance are considered. Executive compensation on stock return, chief executive officer turnover on firm accounting performance, or chief executive officer turnover on stock market performance, all demonstrate no bonding effect. The results are attributed to institutional environment in which executive compensation is solely dependent on accounting profits among Chinese firms, and the A‐share market offers weak investor protection. We also find that both legal and reputational bonding effects work on improved governance of AH‐share firms, although such effects are highly dependent on specific market mechanisms including that of firm executives. Our findings may contribute to current bonding literature and have policy implications on future state‐owned enterprise reforms.

The Role of Local NGOs in Promoting Primary Education: Evidence from Six Local NGOs in Sidama Zone, SNNPRS, Ethiopia

Education is among the determining factors of a country’s development. Nothing can go right if education goes wrong. One cannot imagine about development when the actors of development are illiterate. In connection to this, in Ethiopia, a considerable attention and priority has been given to education in general and that of primary education in particular. In this regard, NGOs are playing important role in promoting the country’s development. These motivated the researcher to assess the role of six local NGOs in promoting primary education in Sidama Zone. To examine the role of local NGOs in primary education promotion, both qualitative and quantitative research methods were employed. A total of 201 student respondents were systematically selected from 10,632 target population to conduct the questionnaires interviews. Primary data was collected by using questionnaire, interview, field observations and FGDs. The information obtained from these sampled local NGOs indicated that their involvement has brought different benefits to the target community like quality education service provision, improved the low awareness of community to send children to school, fulfilled the material needs of children in general and girls in particular, supplying different educational materials and teaching older children with vocational skills training in order to enrich students’ future career. Above all, the educational project implemented by these local NGOs benefited older children beyond the conventional primary school age that they had no access to primary education before project intervention by the local NGOs. On contrary, the research reveals some important issues to be improved like lower level of community participation at identification and evaluation stages, challenges in sustaining vocational skills training and NGOs priority in targeting their projects in nearby districts. In relation to challenges, there are many challenges faced during the project intervention. Among which, lower level of capacity at grassroots level officials to support project implementation process, shortage of qualified teachers , high staff turnover in district education office and new Civil Society Organizations Proclamation on budget utilization. In addition to this, delay in starting the project after agreement signed and timely reporting problem were raised as challenges from district education office. It is concluded that, the intervention made by these local NGOs increased access, improved quality and ensured gender equity of education service provision. As the result, participation of students in general and that of girls in particular in those districts are improved after the intervention of education projects. In general, the community should participate at project identification and evaluation stages to ensure project sustainability and vocational skills training should be institutionalized and run by schools. Key words: Local NGOs, Primary Education, Projects, Role, Sidama DOI : 10.7176/JESD/10-19-05 Publication date :October 31 st 2019

Whistle Blowing, Forced CEO Turnover, and Misconduct: The Role of Socially Minded Employees and Directors

We examine the response of prosocial employees and boards of directors to corporate misconduct. We develop several proxies for the presence of prosocial employees and directors based on the density of social networks and social capital in the county of the firms’ headquarters and companies’ relevant corporate social responsibility ratings. We document that proxies for prosocial employees and directors are associated with an increase in whistle blowing and forced chief executive officer turnover in a sample of firms that engage in misconduct. The higher expected cost of misconduct in firms with prosocial employees is associated with a lower likelihood of misconduct. Our findings highlight the role of nonfinancial imperatives of employees and directors in mitigating misconduct. This paper was accepted by Suraj Srinivasan, accounting.

The Impact of Information Security Breach Incidents on CIO Turnover

ABSTRACTWe investigate the relationship between security breaches and chief information officer (CIO) turnover. Because CIOs are directly responsible for IT performance, we argue that their turnover likelihood is higher when they fail to meet IT performance expectations, as reflected by information security breaches. Specifically, we find that breaches caused by system deficiency increase CIO turnover likelihood by 72 percent. However, we find no such association for breaches caused by criminal fraud or human error. We extend our analyses to other executives and document that CEOs are more likely to turn over following breaches caused by both system deficiency and human error, consistent with their broader role within the firm. By contrast, we find no evidence suggesting that CFOs are more likely to turn over following breaches. The findings indicate negative labor market consequences for executives who fail to meet performance expectations within the scope of their duties.

Job satisfaction and turnover intentions of correctional officers in a Prague prison

Job satisfaction is one of the most researched phenomena. But I am not aware of a study that assesses job satisfaction in Czech prisons despite the fact that it is a specific job with high physical and mental demands in a potentially dangerous environment. The purpose of this paper is to create a model describing job satisfaction and verify the anticipated relationship between job satisfaction and turnover of Prague correctional officers. While the relationship between job satisfaction and turnover intentions has been confirmed, the anticipated strong relationship between supervisor support and correctional officer job satisfaction has not been confirmed. Descriptive statistics have also revealed the surprising fact that the employees with the lowest tenure have the weakest turnover intentions.

Effects of CEO Turnover in Banks: Evidence Using Exogenous Turnovers in Indian Banks

We examine the effects of chief executive officer (CEO) turnover in banks. Incoming bank CEOs face problems of information asymmetry because banks’ operations are opaque and bank risk can change dramatically in a short time. These CEOs may therefore change bank policies to manage their personal risks. Since CEO turnover is usually endogenous, we utilize a setting in which CEO turnover is based solely on retirement age and is thus exogenous to bank performance. Consistent with our thesis, incoming CEOs increase provisioning for future delinquencies and shrink lending. Bank stock prices decline following these changes. Politically motivated lending or ever-greening cannot explain our results.

Change and continuity in combat: a statistical analysis of the officers of 5th Australian Infantry Battalion, 1914 to 1918

ABSTRACTOfficers are an underexplored aspect of the Australian experience of the First World War. Using the wealth of data available from personnel and unit records from the Australian Imperial Force, this article takes a snapshot of the officers from the 5th Australian Infantry Battalion each Christmas Day from 1914 to 1918, to explore the changes in the battalion officer cohort as the war progressed. Throughout the war there was constant turnover of officers, and the battalion needed to maintain a strength over twice its war establishment in order to sustain casualties. Given the significant number of casualties suffered this required a large regular intake of new officers. However, the demographic composition did not change much, nor was there a perfect meritocracy. For all the dynamism about the movement of officers in and out of the battalion, it maintained a relatively static demographic profile throughout the war.

Reactions of Nonprofit Monitors to Financial Reporting Problems

ABSTRACT This study investigates how those in charge of monitoring nonprofits—donors and boards of directors—react to disclosure of financial reporting problems (accounting errors and internal control deficiencies). I find that donations tend to fall following disclosure of severe errors and control deficiencies. Furthermore, donations fall following errors only when they are disclosed in the report that is most widely accessible by donors. Turnover of chief financial officers (CFOs), representing a possible response of boards to financial reporting problems, increases following disclosure of errors. CFO turnover is not robustly related to control deficiencies. Overall, the results are consistent with donors and boards being willing to take action in response to concerns about financial reporting quality, thus indicating that they consider financial reporting important and that they act on signals of low quality. Interviews with nonprofit board members suggest that the value of error-free financial reporting derives less from the decision usefulness of the information and more from demonstrating that the organization is competent and trustworthy. JEL Classifications: M40. Data Availability: Data are available from sources identified in the paper.