Firm Profitability, State Ownership, and Top Management Turnover at the Listed Firms in China: A Behavioral Perspective

By Wei Shen, Chen Lin. 2009

114 citations recorded by the source corpus.

Using data from a large sample of the listed firms in China from 1999 to 2002, we find that firm profitability and state ownership are negatively related to top management turnover only when firm profitability is below target (measured by industry median). We also find that top management turnover has a positive impact on subsequent firm profitability when it occurs under performance below target, but has a negative impact when it occurs under performance above target. Lastly, we find that top management turnover under low performance has a positive impact on subsequent firm profitability when the state is not the largest shareholder, but has no impact when the state is the largest shareholder.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/dd24e9dac29ed5945e6d25d3685fc7a407e0fdd2

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

Citations in the corpus

Organizational responses to performance feedback: A meta-analytic review (2019, background): “Finally, recent studies have shown that the effects of performance feedback on organizational actions may vary according to various internal and external contingencies, such as firm size (Audia and Greve, 2006; Greve, 2008), firm age (Delmar and Wennberg, 2007; Desai, 2008), slack resources (Chen an”
Integrating agency and resource dependence theory: Firm profitability, industry regulation, and board task performance (2013, background): “ROE is the most relevant figure from the equity-holders’ perspective, whom boards pay attention to, and it is used as an overall profitability measure for corporations capturing both operating and financial results (Shen & Lin, 2009; Brick & Chidambaran, 2010).”
Does Ownership Type Matter for Corporate Social Responsibility (2012, background): “Furthermore, state-owned companies can use ownership to pursue political goals (see Ding et al., 2007; Shen & Lin, 2009).”