CEO turnover: the alignment of shareholders in public firms
| (1) | (2) | (3) | (4) | (5) | (6) | |
|---|---|---|---|---|---|---|
| Sizet−1 (ln assets) | −0.0248 (0.0692) | 0.0347 (0.0404) | −0.0161 (0.0806) | 0.0536 (0.0567) | −0.0201 (0.0818) | 0.0499 (0.0586) |
| Leveraget−1 | 0.2864 (0.2134) | 0.0058 (0.1409) | 0.3479 (0.2349) | 0.0027 (0.1634) | 0.3737 (0.2395) | 0.0310 (0.1704) |
| CEO dualityt−1 | −0.0713 (0.1116) | −0.0035 (0.0742) | 0.0134 (0.1302) | 0.0299 (0.0875) | 0.0265 (0.1313) | 0.0277 (0.0918) |
| Stake held by the CEOt−1 | −1.3285 (2.5223) | −0.7441 (1.7222) | −1.9203 (2.5802) | −2.4778 (1.8319) | −1.0030 (2.5823) | −2.5584 (1.8663) |
| IBEX-35 | 0.0252 (0.1971) | −0.0249 (0.1244) | −0.6425† (0.3662) | −0.3027 (0.2076) | −0.7505* (0.3760) | −0.2347 (0.2226) |
| CEO turnovert−1 | −0.0803 (0.0644) | −0.0323 (0.0439) | −0.0958 (0.0685) | −0.0441 (0.0485) | −0.1047 (0.0703) | −0.0460 (0.0509) |
| IBEX-35 × CEO turnovert−1 | −0.1364 (0.1303) | 0.0316 (0.0828) | −0.1466 (0.1347) | 0.0341 (0.0902) | −0.1396 (0.1356) | 0.0398 (0.0942) |
| Chairperson turnovert−1 | 0.1543† (0.0861) | 0.0536 (0.0603) | 0.1565† (0.0894) | 0.0492 (0.0648) | 0.1547† (0.0914) | 0.0468 (0.0679) |
| IBEX-35 × Chairperson turnovert−1 | −0.0135 (0.1974) | −0.0750 (0.1253) | −0.0672 (0.2026) | −0.0938 (0.1343) | −0.0763 (0.2035) | −0.0877 (0.1371) |
| −0.1052** (0.0376) | −0.1194** (0.0406) | −0.1216** (0.0407) | ||||
| IBEX-35 × | −0.1541† (0.0889) | −0.1892* (0.0925) | −0.1993* (0.0925) | |||
| 0.0003 (0.0040) | 0.0001 (0.0045) | −0.0001 (0.0046) | ||||
| IBEX-35 × | −0.0150*** (0.0044) | −0.0140** (0.0050) | −0.0136** (0.0051) | |||
| C1t−1 | 0.0576 (0.2147) | 0.0164 (0.1470) | ||||
| IBEX-35 × C1t−1 | 2.8446** (0.9868) | 2.1858*** (0.6094) | ||||
| C2t−1 | 0.0911 (0.2356) | 0.0774 (0.1669) | ||||
| IBEX-35 × C2t−1 | 1.4990* (0.7033) | 0.6790† (0.4004) | ||||
| C3t−1 | 0.0684 (0.2236) | 0.0859 (0.1609) | ||||
| IBEX-35 × C3t−1 | 1.4737* (0.6189) | 0.4332 (0.3702) | ||||
| Time dummies | Yes | Yes | Yes | Yes | Yes | Yes |
| Intercept | −1.3882*** (0.4016) | −1.6676*** (0.2363) | −1.2973** (0.4750) | −1.6706*** (0.3390) | −1.2899** (0.4870) | −1.6758*** (0.3533) |
| F–test | 12.30*** | 23.96*** | 10.01*** | 18.45*** | 9.69*** | 17.46*** |
| R Square (within) | 0.3442 | 0.4905 | 0.3158 | 0.4493 | 0.3139 | 0.4437 |
| Observations | 535 | 564 | 502 | 521 | 492 | 505 |
| Average VIF | 1.67 | 2.01 | 2.01 | 2.51 | 2.16 | 2.69 |
| (1) | (2) | (3) | (4) | (5) | (6) | |
|---|---|---|---|---|---|---|
| Size | −0.0248 (0.0692) | 0.0347 (0.0404) | −0.0161 (0.0806) | 0.0536 (0.0567) | −0.0201 (0.0818) | 0.0499 (0.0586) |
| Leverage | 0.2864 (0.2134) | 0.0058 (0.1409) | 0.3479 (0.2349) | 0.0027 (0.1634) | 0.3737 (0.2395) | 0.0310 (0.1704) |
| CEO duality | −0.0713 (0.1116) | −0.0035 (0.0742) | 0.0134 (0.1302) | 0.0299 (0.0875) | 0.0265 (0.1313) | 0.0277 (0.0918) |
| Stake held by the CEO | −1.3285 (2.5223) | −0.7441 (1.7222) | −1.9203 (2.5802) | −2.4778 (1.8319) | −1.0030 (2.5823) | −2.5584 (1.8663) |
| IBEX-35 | 0.0252 (0.1971) | −0.0249 (0.1244) | −0.6425† (0.3662) | −0.3027 (0.2076) | −0.7505* (0.3760) | −0.2347 (0.2226) |
| CEO turnover | −0.0803 (0.0644) | −0.0323 (0.0439) | −0.0958 (0.0685) | −0.0441 (0.0485) | −0.1047 (0.0703) | −0.0460 (0.0509) |
| IBEX-35 × CEO turnover | −0.1364 (0.1303) | 0.0316 (0.0828) | −0.1466 (0.1347) | 0.0341 (0.0902) | −0.1396 (0.1356) | 0.0398 (0.0942) |
| Chairperson turnover | 0.1543† (0.0861) | 0.0536 (0.0603) | 0.1565† (0.0894) | 0.0492 (0.0648) | 0.1547† (0.0914) | 0.0468 (0.0679) |
| IBEX-35 × Chairperson turnover | −0.0135 (0.1974) | −0.0750 (0.1253) | −0.0672 (0.2026) | −0.0938 (0.1343) | −0.0763 (0.2035) | −0.0877 (0.1371) |
| −0.1052** (0.0376) | −0.1194** (0.0406) | −0.1216** (0.0407) | ||||
| IBEX-35 × | −0.1541† (0.0889) | −0.1892* (0.0925) | −0.1993* (0.0925) | |||
| 0.0003 (0.0040) | 0.0001 (0.0045) | −0.0001 (0.0046) | ||||
| IBEX-35 × | −0.0150*** (0.0044) | −0.0140** (0.0050) | −0.0136** (0.0051) | |||
| 0.0576 (0.2147) | 0.0164 (0.1470) | |||||
| IBEX-35 × | 2.8446** (0.9868) | 2.1858*** (0.6094) | ||||
| 0.0911 (0.2356) | 0.0774 (0.1669) | |||||
| IBEX-35 × | 1.4990* (0.7033) | 0.6790† (0.4004) | ||||
| 0.0684 (0.2236) | 0.0859 (0.1609) | |||||
| IBEX-35 × | 1.4737* (0.6189) | 0.4332 (0.3702) | ||||
| Time dummies | Yes | Yes | Yes | Yes | Yes | Yes |
| Intercept | −1.3882*** (0.4016) | −1.6676*** (0.2363) | −1.2973** (0.4750) | −1.6706*** (0.3390) | −1.2899** (0.4870) | −1.6758*** (0.3533) |
| 12.30*** | 23.96*** | 10.01*** | 18.45*** | 9.69*** | 17.46*** | |
| 0.3442 | 0.4905 | 0.3158 | 0.4493 | 0.3139 | 0.4437 | |
| Observations | 535 | 564 | 502 | 521 | 492 | 505 |
| Average VIF | 1.67 | 2.01 | 2.01 | 2.51 | 2.16 | 2.69 |
Note(s): The table presents the fixed-effects regression results of CEO turnover as presented in equation (2). Model specifications 1, 3 and 5 use the Market-to-Book as a performance variable, while ROA is the performance metric in models 2, 4 and 6. The variable C1 refers to the stake held by the largest shareholder, while C2 and C3 are the ownership concentration by the two largest and three largest shareholders, respectively. Robust standard errors are presented in brackets. †, *, **, *** indicates significance at the 0.10, 0.05, 0.01 and 0.001 levels, respectively
Source(s): Authors' elaboration