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  • Dasgupta Li Wang 2017 RFS (2)

    Rights statement: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in The Review of Financial Studies following peer review. The definitive publisher-authenticated version Sudipto Dasgupta, Xi Li, Albert Y Wang; Product Market Competition Shocks, Firm Performance, and Forced CEO Turnover, The Review of Financial Studies, Volume 31, Issue 11, 1 November 2018, Pages 4187–4231, https://doi.org/10.1093/rfs/hhx129 is available online at: https://academic.oup.com/rfs/article/31/11/4187/4708265

    Accepted author manuscript, 941 KB, PDF-document

    Embargo ends: 7/12/19

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

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Product Market Competition Shocks, Firm Performance, and Forced CEO Turnover

Research output: Contribution to journalJournal article

Published
<mark>Journal publication date</mark>1/11/2018
<mark>Journal</mark>Review of Financial Studies
Issue number11
Volume31
Number of pages45
Pages (from-to)4187-4231
Publication statusPublished
Early online date7/12/17
Original languageEnglish

Abstract

We examine the effect of competition shocks induced by major industry-level tariff cuts on forced CEO turnover. Both the likelihood of forced CEO turnover and its sensitivity to performance increase. These effects are stronger for firms exposed to greater predation risk and with products more similar to those of other firms. CEOs are more likely to be forced out in weak governance firms; however, in good governance firms, CEOs are offered higher incentive pay. New outside CEOs receive higher incentive pay and come from firms with lower cost structures and higher asset sales. Performance and productivity improve after forced turnover.

Bibliographic note

This is a pre-copy-editing, author-produced PDF of an article accepted for publication in The Review of Financial Studies following peer review. The definitive publisher-authenticated version Sudipto Dasgupta, Xi Li, Albert Y Wang; Product Market Competition Shocks, Firm Performance, and Forced CEO Turnover, The Review of Financial Studies, Volume 31, Issue 11, 1 November 2018, Pages 4187–4231, https://doi.org/10.1093/rfs/hhx129 is available online at: https://academic.oup.com/rfs/article/31/11/4187/4708265