The Effect of CEOs’ Turnover on the Corporate Sustainability Performance of French Firms.
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| Title: | The Effect of CEOs’ Turnover on the Corporate Sustainability Performance of French Firms. |
|---|---|
| Authors: | Bernard, Yohan1 yohan.bernard@univ-fcomte.fr, Godard, Laurence1, Zouaoui, Mohamed2 |
| Source: | Journal of Business Ethics. Jul2018, Vol. 150 Issue 4, p1049-1069. 21p. 1 Diagram, 8 Charts. |
| Subject Terms: | *Employees, Chief executive officers, Labor turnover, Corporate sustainability, Executive succession, Business enterprises, Employee promotions, Business enterprises & the environment |
| Geographic Terms: | France |
| Company/Entity: | Global Reporting Initiative (Organization) |
| Abstract: | This paper examines the relationship between turnover among chief executive officers (CEOs) and corporate sustainability performance (CSP) by identifying the influence of two major types of succession to the top job (internal or external promotion) and the reasons for change. Our model also integrates the firm’s past prioritization of CSP and the impact of a company’s participation in the Global Reporting Initiative (GRI). Upper echelons theory and agency theory frameworks are adopted to understand CSP. Using an analysis of panel data for 88 public companies across 13 years in France, we find that a change of chief executive has a positive and significant effect on CSP 5 years after the change. This positive effect is stronger when the new CEO is recruited from outside the firm. The impact on CSP is invariably positive and significant, except for voluntary departures. The arrival of a new CEO affects CSP less when the firm has already achieved a high standard of CSP and participates in the GRI. These results are obtained after controlling CSP determinants already validated in the literature (financial performance, size, profitability, etc.). The findings show that expectations of CEOs are not solely economic and financial but also concern CSP. In terms of governance, they should prompt shareholders looking to strengthen CSP to choose new CEOs from outside the firm and to encourage the firm to participate in the GRI. [ABSTRACT FROM AUTHOR] |
| Copyright of Journal of Business Ethics is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Education Research Complete |
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| Header | DbId: ehh DbLabel: Education Research Complete An: 130551827 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: The Effect of CEOs’ Turnover on the Corporate Sustainability Performance of French Firms. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Bernard%2C+Yohan%22">Bernard, Yohan</searchLink><relatesTo>1</relatesTo><i> yohan.bernard@univ-fcomte.fr</i><br /><searchLink fieldCode="AR" term="%22Godard%2C+Laurence%22">Godard, Laurence</searchLink><relatesTo>1</relatesTo><br /><searchLink fieldCode="AR" term="%22Zouaoui%2C+Mohamed%22">Zouaoui, Mohamed</searchLink><relatesTo>2</relatesTo> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Journal+of+Business+Ethics%22">Journal of Business Ethics</searchLink>. Jul2018, Vol. 150 Issue 4, p1049-1069. 21p. 1 Diagram, 8 Charts. – Name: Subject Label: Subject Terms Group: Su Data: *<searchLink fieldCode="DE" term="%22Employees%22">Employees</searchLink><br /><searchLink fieldCode="DE" term="%22Chief+executive+officers%22">Chief executive officers</searchLink><br /><searchLink fieldCode="DE" term="%22Labor+turnover%22">Labor turnover</searchLink><br /><searchLink fieldCode="DE" term="%22Corporate+sustainability%22">Corporate sustainability</searchLink><br /><searchLink fieldCode="DE" term="%22Executive+succession%22">Executive succession</searchLink><br /><searchLink fieldCode="DE" term="%22Business+enterprises%22">Business enterprises</searchLink><br /><searchLink fieldCode="DE" term="%22Employee+promotions%22">Employee promotions</searchLink><br /><searchLink fieldCode="DE" term="%22Business+enterprises+%26+the+environment%22">Business enterprises & the environment</searchLink> – Name: SubjectGeographic Label: Geographic Terms Group: Su Data: <searchLink fieldCode="DE" term="%22France%22">France</searchLink> – Name: SubjectCompany Label: Company/Entity Group: Su Data: <searchLink fieldCode="DE" term="%22Global+Reporting+Initiative+%28Organization%29%22">Global Reporting Initiative (Organization)</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: This paper examines the relationship between turnover among chief executive officers (CEOs) and corporate sustainability performance (CSP) by identifying the influence of two major types of succession to the top job (internal or external promotion) and the reasons for change. Our model also integrates the firm’s past prioritization of CSP and the impact of a company’s participation in the Global Reporting Initiative (GRI). Upper echelons theory and agency theory frameworks are adopted to understand CSP. Using an analysis of panel data for 88 public companies across 13 years in France, we find that a change of chief executive has a positive and significant effect on CSP 5 years after the change. This positive effect is stronger when the new CEO is recruited from outside the firm. The impact on CSP is invariably positive and significant, except for voluntary departures. The arrival of a new CEO affects CSP less when the firm has already achieved a high standard of CSP and participates in the GRI. These results are obtained after controlling CSP determinants already validated in the literature (financial performance, size, profitability, etc.). The findings show that expectations of CEOs are not solely economic and financial but also concern CSP. In terms of governance, they should prompt shareholders looking to strengthen CSP to choose new CEOs from outside the firm and to encourage the firm to participate in the GRI. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Journal of Business Ethics is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
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| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1007/s10551-016-3178-7 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 21 StartPage: 1049 Subjects: – SubjectFull: Employees Type: general – SubjectFull: Chief executive officers Type: general – SubjectFull: Labor turnover Type: general – SubjectFull: Corporate sustainability Type: general – SubjectFull: Executive succession Type: general – SubjectFull: Business enterprises Type: general – SubjectFull: Employee promotions Type: general – SubjectFull: Business enterprises & the environment Type: general – SubjectFull: France Type: general – SubjectFull: Global Reporting Initiative (Organization) Type: general Titles: – TitleFull: The Effect of CEOs’ Turnover on the Corporate Sustainability Performance of French Firms. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Bernard, Yohan – PersonEntity: Name: NameFull: Godard, Laurence – PersonEntity: Name: NameFull: Zouaoui, Mohamed IsPartOfRelationships: – BibEntity: Dates: – D: 15 M: 07 Text: Jul2018 Type: published Y: 2018 Identifiers: – Type: issn-print Value: 01674544 Numbering: – Type: volume Value: 150 – Type: issue Value: 4 Titles: – TitleFull: Journal of Business Ethics Type: main |
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