earticle

영어

This study aims to examine the effect of firm performance on the CEO turnover in the sample of large business conglomerates, Chaebols in Korea. Using longitudinal data from 108 firms from large business conglomerates during 2001-2008, this study examined the effect of firm performance on the CEO turnover. This study finds that the profitability of firms does not have significant effect on the CEO turnover while the sales growth of firms have a negative effect on the CEO turnover. The results suggest that the performance of individual firms of large business conglomerates are likely to be evaluated on the base of how much the individual firms contribute to the accomplishment of the goal of business conglomerates, the expansion of the size of business conglomerates as a whole in terms of sales volumes. The sensitivity of CEO turnover to individual firms' sales growth is stronger in the cases of intra-group transfer than in the cases of CEO weeding-out. This study also finds that the sensitivity of CEO turnover to individual firms' sales growth is higher in the manager-controlled firms than in the owner-controlled firms.