Perk Consumption and CEO Turnover

Wai Leung; Yifan Zhan; Hung Gay Fung

doi:10.2139/ssrn.4157598

Perk Consumption and CEO Turnover

Wai Leung, Yifan Zhan, Hung Gay Fung

University of Missouri-St. Louis

Research output: Contribution to journal › Article › peer-review

Abstract

This study examines the relationship between perk consumption and forced CEO turnover. The results based on Chinese firms indicate that the likelihood of forced CEO turnover increases with excess perk consumption by executives. The positive effect of excess perk consumption on CEO dismissal declines when the firms are momentum winners in market returns and profitability while it rises when firms are momentum losers. Non-co-opted independent directors amplify the positive effect of excess perks on forced CEO turnover whereas board gender diversity reduces such likelihood. Better educated CEOs appear to consume fewer excess perks, reducing the likelihood of forced turnover.

Original language	American English
Journal	SSRN
DOIs	https://doi.org/10.2139/ssrn.4157598
State	Published - 2022

Keywords

CEO self-discipline
board characteristics
excess perks
forced CEO turnover
momentum losers and momentum winners

Disciplines

Finance

Access to Document

10.2139/ssrn.4157598License: Unspecified

Cite this

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title = "Perk Consumption and CEO Turnover",

abstract = " This study examines the relationship between perk consumption and forced CEO turnover. The results based on Chinese firms indicate that the likelihood of forced CEO turnover increases with excess perk consumption by executives. The positive effect of excess perk consumption on CEO dismissal declines when the firms are momentum winners in market returns and profitability while it rises when firms are momentum losers. Non-co-opted independent directors amplify the positive effect of excess perks on forced CEO turnover whereas board gender diversity reduces such likelihood. Better educated CEOs appear to consume fewer excess perks, reducing the likelihood of forced turnover. ",

keywords = "CEO self-discipline, board characteristics, excess perks, forced CEO turnover, momentum losers and momentum winners",

author = "Wai Leung and Yifan Zhan and Fung, {Hung Gay}",

note = "63 Pages Posted: 8 Jul 2022 There are 2 versions of this paper This study examines the relationship between perk consumption and forced CEO turnover. The results based on Chinese firms indicate that the likelihood of forced CEO turnover increases with excess perk consumption by executives.",

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N2 - This study examines the relationship between perk consumption and forced CEO turnover. The results based on Chinese firms indicate that the likelihood of forced CEO turnover increases with excess perk consumption by executives. The positive effect of excess perk consumption on CEO dismissal declines when the firms are momentum winners in market returns and profitability while it rises when firms are momentum losers. Non-co-opted independent directors amplify the positive effect of excess perks on forced CEO turnover whereas board gender diversity reduces such likelihood. Better educated CEOs appear to consume fewer excess perks, reducing the likelihood of forced turnover.

AB - This study examines the relationship between perk consumption and forced CEO turnover. The results based on Chinese firms indicate that the likelihood of forced CEO turnover increases with excess perk consumption by executives. The positive effect of excess perk consumption on CEO dismissal declines when the firms are momentum winners in market returns and profitability while it rises when firms are momentum losers. Non-co-opted independent directors amplify the positive effect of excess perks on forced CEO turnover whereas board gender diversity reduces such likelihood. Better educated CEOs appear to consume fewer excess perks, reducing the likelihood of forced turnover.

KW - CEO self-discipline

KW - board characteristics

KW - excess perks

KW - forced CEO turnover

KW - momentum losers and momentum winners

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Perk Consumption and CEO Turnover

Abstract

Keywords

Disciplines

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