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Record W4213357691 · doi:10.55365/1923.x2021.19.03

CEO Turnover and Equity Volatility

2021· article· en· W4213357691 on OpenAlexvenueno aff
Hui Li, Paul Farah

Bibliographic record

VenueReview of Economics and Finance · 2021
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicCorporate Finance and Governance
Canadian institutionsnot available
Fundersnot available
KeywordsVolatility (finance)EconomicsEquity (law)EconometricsOriginalityFinancial economicsEmpirical evidenceTurnoverMonetary economicsPsychologySocial psychologyManagementPolitical science

Abstract

fetched live from OpenAlex

Purpose of the paper: This study aims to investigate changes in equity volatility around CEO turnovers. It proposes hypotheses regarding the impact of CEO performance and types of turnover on the changes in equity volatility. It extends the current understanding of the existing theories by providing new empirical evidence. Design/methodology/approach: This paper uses both event study and regression analysis to examine and test the hypotheses proposed empirically. Data are obtained from multiple databases. Findings: This study finds evidence that the relationship between changes in equity volatility and the likelihood of CEO turnovers does not monotonically increase, but is a function of the various types of turnovers and successions. Compared to the departure of outperforming CEOs, the change in equity volatility following the departure of underperforming CEOs is much greater. The positive relationship between the change in volatility and past underperformance is stronger for forced turnovers than for voluntary turnovers. Equity volatility is substantially lower when the CEO relinquishing the post remains as an executive chairman, especially for those successions involving outside appointments. Originality/value: This paper extends the strategy and ability hypothesis by investigating the behaviour of equity volatility around CEO departures in case of prior under or outperformance along with the forced or voluntary nature of the turnover and provide new empirical evidence on the theories.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.014
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: Observational
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.002
Threshold uncertainty score0.006

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0010.014
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0010.001
Science and technology studies0.0000.000
Scholarly communication0.0010.000
Open science0.0000.001
Research integrity0.0000.001
Insufficient payload (model declined to judge)0.0020.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.027
GPT teacher head0.232
Teacher spread0.205 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2021
Admission routes1
Has abstractyes

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