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The "financial bath" hypothesis: An empirical investigation

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  • Salomo, Sören
  • Leker, Jens
Abstract
This article examines the influence of CEO changes in large German companies manifested in their financial statements during three defined phases of the turnover process. It is shown that the conflicting results in previous research might have stemmed from not differing among turnover reasons. Companies experiencing an involuntary change of CEO undergo a different evolution of performance than companies whose CEOs have changed voluntarily or for reasons like mandatory retirement or death.

Suggested Citation

  • Salomo, Sören & Leker, Jens, 1997. "The "financial bath" hypothesis: An empirical investigation," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 448, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    • Handle: RePEc:zbw:cauman:448
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    File URL: https://www.econstor.eu/bitstream/10419/149065/1/manuskript_448.pdf
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    References listed on IDEAS

    as
    1. Moore, Ml, 1973. "Management Changes And Discretionary Accounting Decisions," Journal of Accounting Research, Wiley Blackwell, vol. 11(1), pages 100-107.
    2. Coughlan, Anne T. & Schmidt, Ronald M., 1985. "Executive compensation, management turnover, and firm performance : An empirical investigation," Journal of Accounting and Economics, Elsevier, vol. 7(1-3), pages 43-66, April.
    3. Murphy, Kevin J. & Zimmerman, Jerold L., 1993. "Financial performance surrounding CEO turnover," Journal of Accounting and Economics, Elsevier, vol. 16(1-3), pages 273-315, April.
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