Culture and chief executive officer forced turnover

Research output: Contribution to journalArticlepeer-review


Using a large sample of 809 chief executive officers (CEOs) at Fortune Global 500 firms, the author finds that the accounting performance of the firm is the main driver of the CEO forced turnover. By examining 517 CEO turnovers it is shown that the hazard of forced turnover is significantly reduced as the firm's accounting performance improved but the hazard is not significantly affected by the firm's stock performance nor by the CEO overconfidence. Also, by examining the cultural factors measured by the worldwide governance indicators, it is found find that the hazard of the forced turnover is significantly higher in the country with higher control of corruption. Lastly, by examining the interactions between these factors and the national culture, it is found that the board would be affected by the dominant culture of their home country when they interpret the subjective and intangible factors such as CEO overconfidence.

Original languageEnglish
Pages (from-to)258-266
Number of pages9
JournalInvestment Management and Financial Innovations
Issue number1
StatePublished - 2015

Bibliographical note

Publisher Copyright:
Copyright © Hyung-Suk Choi, 2015.


  • CEO turnover
  • Corporate governance
  • Cultural factors
  • Overconfidence


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