“Executive Turnover: The Matching and Restructuring of the Top Management” by Xianming ZHOU
University of Hong Kong
When the firm restructures its management, high turnover and intensive hiring of top executives occur. The need for restructuring is greater when the management does not function satisfactorily due to poor matching. We examine the role in executive turnover of the matching and associated restructuring of the top management. Many predictions are derived, which, from managerial matching point of view, not only explain well-established empirical regularities but identify important features of managerial turnover unaddressed in prior studies. By examining large samples of U.S. firms, we document strong evidence of a significant role of management matching and restructuring in executive turnover.