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Should They Stay or Should They Go? CEO Appointments and Performance in a Transitional Economy

Author

Listed:
  • Katarzyna Byrka-Kita

    (University of Szczecin, Poland)

  • Mateusz Czerwinski

    (University of Szczecin, Poland)

  • Stephen P. Ferris

    (Ball State University, Muncie, USA)

  • Agnieszka Pres-Perepeczo

    (University of Szczecin, Poland)

  • Tomasz Wisniewski

    (University of Szczecin, Poland)

Abstract

This study examines the corporate operating performance surrounding CEO appointments from 2001-2013 to firms listed on the Warsaw Stock Exchange. We find that the decision to reappoint or to replace a CEO is preceded by a decline in corporate operating performance. We fail to find, however, improvements or stability in operating performance following either the replacement or reappointment of the incumbent CEO. The likelihood of CEO replacement is greater if the firm does not perform well in the period preceding the appointment. We conclude that there are inefficiencies or inadequacies in the corporate governance system of Polish publicly traded firms.

Suggested Citation

  • Katarzyna Byrka-Kita & Mateusz Czerwinski & Stephen P. Ferris & Agnieszka Pres-Perepeczo & Tomasz Wisniewski, 2020. "Should They Stay or Should They Go? CEO Appointments and Performance in a Transitional Economy," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 70(2), pages 145-171, August.
    • Handle: RePEc:fau:fauart:v:70:y:2020:i:2:p:145-171
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    File URL: https://journal.fsv.cuni.cz/mag/article/show/id/1458
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    More about this item

    Keywords

    CEO appointment; operating performance; turnover; internal control;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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