Skip to content Skip to navigation
University of Warwick
  • Study
  • |
  • Research
  • |
  • Business
  • |
  • Alumni
  • |
  • News
  • |
  • About

University of Warwick
Publications service & WRAP

Highlight your research

  • WRAP
    • Home
    • Search WRAP
    • Browse by Warwick Author
    • Browse WRAP by Year
    • Browse WRAP by Subject
    • Browse WRAP by Department
    • Browse WRAP by Funder
    • Browse Theses by Department
  • Publications Service
    • Home
    • Search Publications Service
    • Browse by Warwick Author
    • Browse Publications service by Year
    • Browse Publications service by Subject
    • Browse Publications service by Department
    • Browse Publications service by Funder
  • Help & Advice
University of Warwick

The Library

  • Login
  • Admin

An empirical investigation into top management turnover in UK quoted companies

Tools
- Tools
+ Tools

Florou, Annita (2001) An empirical investigation into top management turnover in UK quoted companies. PhD thesis, University of Warwick.

[img]
Preview
PDF
WRAP_Theses_Florou_2001.pdf - Submitted Version - Requires a PDF viewer.

Download (9Mb) | Preview
Official URL: http://webcat.warwick.ac.uk/record=b1377706~S15

Request Changes to record.

Abstract

The present research analyses the determinants and the implications of senior management departures in the UK. Based on a sample of the 460 largest UK companies by market capitalisation over 1990-1998, and using regression techniques, this study investigates the event of top management turnover in three empirical chapters. The first one documents the circumstances under which poor firm performance may lead to a CEO job separation. The second chapter explores the organisational consequences of CEO turnover by modelling - for the first time in the UK - Chairman turnover at the time of CEO departure. The last empirical chapter deals with the implications of CEO turnover on investment choices. The most important methodological advancement is the rigorous and comprehensive classification of management departures, which increases significantly the power of the tests considered in the thesis. The provision of additional evidence on the conflicting issue of managerial entrenchment, the modelling of Chairman turnover and the investigation of the role of equity-based compensation in mitigating opportunistic managerial incentives are among the conceptual contributions of the study. The primary findings of the thesis can be summarised as follows. Firstly in terms of top management departures, CEO turnover is linked with poor firm performance although the latter must fall significantly in order to increase the turnover likelihood. This disciplining effect seems to have not become stronger over time and, CEOs do not appear to become entrenched at high ownership levels. Secondly with regard to Chairman turnover, there is evidence that some Chairmen also depart when the CEO turns-over, especially following poor company performance or CEO dismissals. Outside CEO succession, on the other hand, does not appear to be associated with additional increases in the Chairman turnover likelihood. Finally with respect to investment, it appears that CEOs threatened by forced termination, tend to cut down investment prior to their departure in order to increase reported income and “save” their jobs. In contrast, retiring CEOs do not engage in opportunistic behaviour, even if they own a small fraction of the company's equity.

Item Type: Thesis or Dissertation (PhD)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Library of Congress Subject Headings (LCSH): Chief executive officers -- Great Britain, Boards of directors -- Great Britain, Corporations -- Great Britain
Official Date: 2001
Dates:
DateEvent
2001UNSPECIFIED
Institution: University of Warwick
Theses Department: Warwick Business School
Thesis Type: PhD
Publication Status: Unpublished
Supervisor(s)/Advisor: Conyon, M. ; Devereux, M.P.
Sponsors: PricewaterhouseCoopers (Firm) ; Economic and Social Research Council ; British Federation of Women Graduates ; Warwick Business School
Extent: xii, 279 leaves
Language: eng

Request changes or add full text files to a record

Repository staff actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics

twitter

Email us: wrap@warwick.ac.uk
Contact Details
About Us