Corporate governance and CEO dismissal in Australia

Philip Sinnadurai; Susan Wright; Chun Lau

Corporate governance and CEO dismissal in Australia

Philip Sinnadurai, Susan Wright, Chun Lau

Department of Accounting and Corporate Governance

Research output: Chapter in Book/Report/Conference proceeding › Conference proceeding contribution › peer-review

Abstract

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.

Original language	English
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
Editors	Oranuj Soongswang
Place of Publication	Malaysia
Publisher	Asian Academic Accounting Association
Pages	193-211
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

Conference	Asian Academic Accounting Association Conference (6th : 2005)
City	Kuala Lumpur
Period	15/11/05 → 17/11/05

Keywords

Chief executive officer dismissal
Board of directors
Corporate governance

Cite this

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). Asian Academic Accounting Association.

Sinnadurai, Philip ; Wright, Susan ; Lau, Chun. / Corporate governance and CEO dismissal in Australia. 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. editor / Oranuj Soongswang. Malaysia : Asian Academic Accounting Association, 2005. pp. 193-211

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title = "Corporate governance and CEO dismissal in Australia",

abstract = "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.",

keywords = "Chief executive officer dismissal, Board of directors, Corporate governance",

author = "Philip Sinnadurai and Susan Wright and Chun Lau",

year = "2005",

language = "English",

pages = "193--211",

editor = "Oranuj Soongswang",

booktitle = "Accounting and Finance",

publisher = "Asian Academic Accounting Association",

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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. Asian Academic Accounting Association, Malaysia, pp. 193-211, Asian Academic Accounting Association Conference (6th : 2005), Kuala Lumpur, 15/11/05.

Corporate governance and CEO dismissal in Australia. / Sinnadurai, Philip; Wright, Susan; Lau, Chun.
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. ed. / Oranuj Soongswang. Malaysia: Asian Academic Accounting Association, 2005. p. 193-211.

Research output: Chapter in Book/Report/Conference proceeding › Conference proceeding contribution › peer-review

TY - GEN

T1 - Corporate governance and CEO dismissal in Australia

AU - Sinnadurai, Philip

AU - Wright, Susan

AU - Lau, Chun

PY - 2005

Y1 - 2005

N2 - 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.

AB - 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.

KW - Chief executive officer dismissal

KW - Board of directors

KW - Corporate governance

M3 - Conference proceeding contribution

SP - 193

EP - 211

BT - Accounting and Finance

A2 - Soongswang, Oranuj

PB - Asian Academic Accounting Association

CY - Malaysia

T2 - Asian Academic Accounting Association Conference (6th : 2005)

Y2 - 15 November 2005 through 17 November 2005

ER -

Sinnadurai P, Wright S, Lau C. Corporate governance and CEO dismissal in Australia. In Soongswang O, editor, 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. Malaysia: Asian Academic Accounting Association. 2005. p. 193-211

Corporate governance and CEO dismissal in Australia

Abstract

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Keywords

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