This paper investigates the association between corporate performance and the probability of chief executive officer (CEO) dismissal for large corporations in Australia. Consistent with prior US and UK studies, corporate performance is negatively related to the probability of CEO dismissal, using both accounting and market-based performance measures. This paper also investigates whether key corporate governance characteristics affect the likelihood of CEO dismissal, by examining their effect on the strength of the negative association between corporate performance and CEO dismissal. The only significant variable is size of the board. Although its effect is opposite to that hypothesized, this paper provides a plausible explanation. Overall, the results are consistent with shareholder wealth considerations dominating board behaviour in Australia.
|Title of host publication||Accounting and Finance|
|Subtitle of host publication||Challenges in rebuilding public confidence of the accounting profession : 6th annual conference Asian Academic Accounting Association 2005, 15 - 17th November 2005 Berjaya Times Square, Kuala Lumpur|
|Place of Publication||Malaysia|
|Publisher||Asian Academic Accounting Association|
|Number of pages||19|
|Publication status||Published - 2005|
|Event||Asian Academic Accounting Association Conference (6th : 2005) - Kuala Lumpur|
Duration: 15 Nov 2005 → 17 Nov 2005
|Conference||Asian Academic Accounting Association Conference (6th : 2005)|
|Period||15/11/05 → 17/11/05|
- Chief executive officer dismissal
- Board of directors
- Corporate governance
Sinnadurai, P., Wright, S., & Lau, C. (2005). Corporate governance and CEO dismissal in Australia. In O. Soongswang (Ed.), Accounting and Finance: Challenges in rebuilding public confidence of the accounting profession : 6th annual conference Asian Academic Accounting Association 2005, 15 - 17th November 2005 Berjaya Times Square, Kuala Lumpur (pp. 193-211). Malaysia: Asian Academic Accounting Association.