The value relevance of top executive departures: Evidence from the Netherlands

Journal of Corporate Finance

Volumn 13, Issue 5, 2007, Pages 721-742

  Cools, Kees ^a,b   Mirjam van Praag, C ^c  

^a UNIVERSITY OF GRONINGEN   (Netherlands)

^b BOSTON CONSULTING GROUP   (United States)

^c UNIVERSITY OF AMSTERDAM   (Netherlands)

Author keywords

Corporate governance; Dismissal; Internal monitoring; Top management departure; Value relevance

Indexed keywords

EID: 36348978664     PISSN: 09291199     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jcorpfin.2007.04.012     Document Type: Article

References (56)

1. Allen M., Panian S., and Lotz R. Managerial succession and organization performance: a recalcitrant problem revisited. Administrative Science Quarterly 24 (1979) 167-180
2. Amir E., and Lev B. Value relevance of nonfinancial information: the wireless communication industry. Journal of Accounting and Economics 22 (1996) 3-30
3. Beaver W. The information content of annual earnings announcements. Journal of Accounting Research (1968) 67-92 (Supplement)
4. Boeker W. Power and managerial dismissal: scapegoating at the top. Administrative Science Quarterly 37 3 (1992) 400-421
5. Brickley J., Smith C., and Zimmerman J. Managerial Economics and Organizational Architecture. 3rd edition (2003), McGraw-Hill
6. Brown M. Administrative succession and organizational performance: the succession effect. Administrative Science Quarterly 27 1 (1982) 1-16
7. Brown S., and Warner J. Using daily stock returns: the case of event studies. Journal of Financial Economics 14 (1985) 3-31
8. Coughlan A., and Schmidt R. Executive compensation, management turnover, and firm performance: an empirical investigation. Journal of Accounting and Economics 7 (1985) 43-66
9. Chen J., Hong H., and Stein J. Forecasting crashes: trading volume, past returns, and conditional skewness in stock prices. Journal of Financial Economics 61 3 (2001) 345-381
10. Dahya J., McConnell J., and Travlos N. The Cadbury committee, corporate performance and top management turnover. The Journal of Finance 57 1 (2002) 461-483
11. Danisevska P., De Jong A., and Rosellon M. Disciplining managers: evidence from two-tier boards, Working Paper (2003)
12. De Jong A., Kabir R., Marra T., and Röell A. Ownership and control in the Netherlands. In: Barca F., and Becht M. (Eds). The Control of Corporate Europe (2001), Oxford University Press 188-206
13. De Jong A., Mertens G., and Roosenboom P. Shareholders' voting at annual meetings: evidence from the Netherlands. Working Paper (2004)
14. De Jong A., DeJong D., Mertens G., and Wasley. C. The role and self-regulation in corporate governance: evidence and implications from the Netherlands. Journal of Corporate Finance 11 (2005) 473-503
15. Dedman E., and Lin S. Shareholder wealth effects of CEO departures: evidence from the UK. Journal of Corporate Finance 1 (2002) 81-104
16. Denis D., and Denis D. Performance changes following top management dismissals. Journal of Finance 50 4 (1995) 1029-1057
17. Dherment-Ferere I., and Renneboog L. Share price reactions to CEO resignations and large shareholder monitoring in listed French companies. In: McCahery J., et al. (Ed). Convergence and Diversity of Corporate Governance Regimes and Capital Markets (2002), Oxford University Press 297-324
18. Espahbodi H., Espahbodi P., Rezaee Z., and Tehranian H. Stock price reaction and value relevance of recognition versus disclosure: the case of stock-based compensation. Journal of Accounting and Economics 33 3 (2002) 343-373
19. Fee C., and Hadlock C. Management turnover and product market competition: empirical evidence from the US newspaper industry. Journal of Business 73 2 (2000) 205-243
20. Fee C., and Hadlock C. Management turnover across the corporate hierarchy. Journal of Accounting and Economics 37 (2004) 3-38
21. Franks J., and Mayer C. Ownership and control of German corporations. The Review of Financial Studies 14 4 (2001) 943-977
22. Franks J., Mayer C., and Renneboog L. Who disciplines management in poorly performing countries?. Journal of Financial Intermediation 10 (2001) 209-248
23. Furtado E., and Rozeff M. The wealth effects of company initiated management changes. Journal of Financial Economics 18 (1987) 147-160
24. Hayes R.M., and Schaefer S. How much are differences in managerial ability worth?. Journal of Accounting and Economics 27 (1999) 125-148
25. Harris M., and Raviv A. Differences of opinion make a horse race. Review of Financial Studies 6 (1993) 473-506
26. Heflin F., and Shaw K. Blockholder ownership and market liquidity. Journal of Financial and Quantitative Analysis 35 4 (2000) 621-633
27. Holthausen R., and Watts R. The relevance of the value relevance literature for financial accounting standard setting. Journal of Accounting and Economics 31 (2001) 77-104
28. Honée H., Timmerman L., and Nethe M. Rapport inzake de toepassing van de structuurregeling: Zeggenschapsverhoudingen in Nederlandse beursvennootschappen. Report for the Ministry of Finance (2000)
29. Hong H., and Stein J. Differences of opinion, short-sales constraints, and market crashes. Review of Financial Studies 16 (2003) 487-525
30. Huson M., Parrino M., and Starks L. Internal monitoring mechanisms and CEO turnover: a long-term perspective. The Journal of Finance 56 6 (2001) 2265-2297
31. Jensen M., and Murphy K. Performance pay and top-management incentives. Journal of Political Economy 98 (1990) 225-264
32. Jenter D., and Kanaan F. CEO turnover and relative performance evaluation. MIT Working Paper (2006)
33. Kabir R., Cantrijn D., and Jeunink A. Takeover defenses, ownership structure and stock returns in the Netherlands: an empirical analysis. Strategic Management Journal 18 2 (1997) 97-109
34. Kallapur S., and Kwan S. The value relevance of brand assets recognized by UK firms. Accounting Review 79 1 (2004) 151-172
35. Kandel E., and Pearson N. Differential interpretation of public signals and trade in speculative markets. Journal of Political Economy 103 4 (1995) 831-872
36. Kang J., and Shivdasani A. Does the Japanese governance system enhance shareholder wealth? Evidence from the stock-price effects of top management turnover. Review of Financial Studies 9 4 (1996) 1061-1095
37. Kaplan S. Top executive rewards and firm performance: a comparison of Japan and the United States. Journal of Political Economy 102 (1994) 510-546
38. Kaplan S. Top executives, turnover and firm performance in Germany. Journal of Law, Economics and Organization 10 1 (1994) 142-159
39. Kaplan S., and Minton B. How has CEO turnover changed? Increasingly performance sensitive boards and increasingly uneasy CEO's. Working Paper (2006)
40. Kim O., and Verrecchia R. Trading volume and price reactions to public announcements. Journal of Accounting Research 29 2 (1991) 302-321
41. Kim O., and Verrecchia R. Market liquidity and volume around earnings announcements. Journal of Accounting and Economics 17 1-2 (1994) 41-67
42. Köke J. The market for corporate control in a bank-based economy: a governance device?. Journal of Corporate Finance 10 (2004) 53-80
43. Lausten M. CEO turnover, firm performance and corporate governance: empirical evidence on Danish firms. International Journal of Industrial Organization 20 3 (2002) 391-414
44. MacKinlay A. Event studies in economics and finance. Journal of Economic Literature 35 (1997) 13-39
45. Mahajan A., and Lummer S. Shareholder wealth effects of management changes. Journal of Business Finance and Accounting 20 3 (1993) 393-410
46. Murphy K., and Zimmerman J. Financial performance surrounding CEO turnover. Journal of Accounting and Economics 16 3 (1993) 273-315
47. Olie R., Glunk U., and Heijltjes M. Continuity and performance at the top: performance effects of the level, extent, type and frequency of top management team changes. Working Paper (2004)
48. Renneboog L. Ownership, managerial control and the governance of companies listed on the Brussels stock exchange. Journal of Banking and Finance 24 (2000) 1959-1995
49. Shevlin T. The value-relevance of non-financial information: a discussion. Journal of Accounting and Economics 22 (1996) 31-42
50. Shleifer A., and Vishny R. A survey of corporate governance. Journal of Finance 52 2 (1997) 737-783
51. Skinner D. Are disclosures about bank derivatives and employee stock options 'value-relevant'?. Journal of Accounting and Economics 22 (1996) 393-405
52. Van Ees H., Postma T., and Sterken E. Board characteristics and corporate performance in the Netherlands. Eastern Economic Journal 29 1 (2003) 41-58
53. Van Oijen, P., 2000. Essays on corporate governance with empirical analyses for the Netherlands, Tinbergen Institute PhD Thesis, The Netherlands.
54. Volpin P. Governance with poor investor protection: evidence from top executive turnover in Italy. Journal of Financial Economics 64 (2002) 61-90
55. Warner J., Watts R., and Wruck K. Stock-prices and top management changes. Journal of Financial Economics 20 1-2 (1988) 461-492
56. Weisbach M. Outside directors and CEO turnover. Journal of Financial Economics 20 (1988) 431-460