Moderating role of Family involvement in Relationship between Corporate Performance and CEO’s turnover: Evidence from Chinese Firms

Noheed Khan; Waseem ullah; Khubaib Shahzad

doi:10.47205/jdss.2021(2-III)34

Moderating role of Family involvement in Relationship between Corporate Performance and CEO’s turnover: Evidence from Chinese Firms

Authors

Noheed Khan

Assistant Professor, Department of Management Studies, The University of Faisalabad, Punjab, Pakistan

Waseem ullah

Lecturer, Department of Management Sciences, University of Gujrat, Gujrat, Punjab, Pakistan

Khubaib Shahzad

DBA (Scholar), Business and Management Department, University of Wales Trinity Saint David (London Campus)

DOI: https://doi.org/10.47205/jdss.2021(2-III)34

Keywords

CEO’s turnover Chinese Firms Corporate Performance Family involvement

Abstract

Prior studies regarding the corporate performance and CEO’s turnover produce inconclusive results. Using a comprehensive database of Chinese firms, this paper proposes a newly formulated conceptual framework that an introduction of interaction term of family involvement in the relationship between corporate performance and CEO’s turnover. Our data sample is composed of 1537 listed non-financial companies for the period 2006 to 2016. We use fixed effect model to analyze the data. The findings show that CEO turnover has a significant negative impact on corporate performance. Furthermore, the family involvement plays crucial moderating role in the relationship between corporate performance and CEO’s turnover. The robust and additional analyses validate the findings of the study.