ABSTRACT
Keywords: CEO turnover; investment; CEO power
performance and political process of senior managers’ power. This section reviews these studies.
2.1 Enterprise efficiency
The performance of an enterprise which has a capable CEO is often better. If the performance of an enterprise is poor, its CEO may be dismissed. Some empirical studies have offered evidence. For example, Warner et al. (1988) found that if the stock price is very low, the possibility of CEO turnover will increase. Other scholars examine whether the expected earnings of securities analysts can influence CEO turnover. Farrell & Whidbee (2003) found that if the real performance doesn’t reach analysts’ expectation, CEO turnover will be more likely to happen.
