Keywords: Management turnover, performance, ownership, concentration
Abstract: I test whether corporate governance is ineffective in emerging markets
by estimating the link between CEO turnover and firm performance for
over 1,200 firms in eight emerging markets. I find two main results.
First, CEOs of emerging market firms are more likely to lose their
jobs when their firm's performance is poor, suggesting that corporate
governance is not ineffective in emerging markets. Second, for the
subset of firms with a large domestic shareholder, there is no link
between CEO turnover and firm performance. For this subset of
emerging market firms, corporate governance appears to be ineffective.
Full paper (335 KB PDF)
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Last update: December 11, 2002