NDLI: Corporate performance, CEO turnover, and CFO dismissals

Content Provider	Springer Nature Link
Author	Zander, Kevin Büttner, Volker Hadem, Michael Schäffer, Utz Richter, Ansgar
Copyright Year	2009
Abstract	Dem Finanzvorstand wird in praxisnahen Publikationen eine herausgehobene Stellung im Vorstand zugesprochen; empirische Befunde zu seiner Bedeutung in der Unternehmensführung sind jedoch rar. So bleibt bisher unbeantwortet, ob Finanzvorstände wie Vorstandsvorsitzende bei geringem Unternehmenserfolg häufiger entlassen werden und inwiefern auch erzwungene Wechsel des Vorstandsvorsitzenden disziplinierend auf Finanzvorstände wirken. Wir untersuchen daher die Disziplinierung von Finanzvorständen in den größten deutschen Aktiengesellschaften zwischen 1999 und 2006. Ausgehend von Prinzipal-Agenten-Beziehungen zwischen Aufsichtsrat, Vorstandsvorsitzendem und Finanzvorstand erwarten wir, dass im Disziplinierungskalkül der Prinzipale auch team- und firmenspezifisches Humankapital eine Rolle spielt. Unsere Ergebnisse zeigen, dass ein geringer Unternehmenserfolg und ein erzwungener Wechsel im Vorstandsvorsitz unabhängig voneinander die Wahrscheinlichkeit einer Disziplinierung des Finanzvorstandes erhöhen. Zudem finden wir Anhaltspunkte für eine enge Teambeziehung zwischen Finanzvorstand und Vorstandsvorsitzendem. Im Vergleich zu früheren Befunden wird die herausgehobene Stellung des Finanzvorstandes gegenüber einfachen Vorstandsmitgliedern deutlich, die eine intensivere Betrachtung des Finanzvorstandes bei zukünftiger Forschung zu Erfolgswirkungen von Führungswechseln nahe legt.The Chief Financial Officer (CFO) is often referred to as a company’s No. 2 on contemporary management boards; yet corresponding empirical evidence is scarce. As a result, academic literature has not yet investigated whether CFOs—like CEOs—are dismissed more frequently if corporate performance is poor and to what extent forced Chief Executive Officer (CEO) turnover also influences disciplinary action towards CFOs. Therefore, in this paper we examine the antecedents of forced CFO departures in the largest German corporations between 1999 and 2006. Building on principal-agent theory, we expect respective relationships between the board of directors, the CEO, and the CFO. Moreover, we propose that principals also take team-specific and firm-specific human capital into consideration when disciplining agents. We find that poor corporate performance and forced CEO turnover both independently increase the likelihood of CFO dismissal. In addition, we find indications for a close team relationship between CFOs and CEOs. In summary, our results support the prominent role of CFOs alongside CEOs on contemporary management boards and suggest a more detailed consideration of CFOs in future research on performance consequences of managerial successions.
Starting Page	1343
Ending Page	1386
Page Count	44
File Format	PDF
ISSN	00442372
Journal	Zeitschrift für Betriebswirtschaft
Volume Number	79
Issue Number	12
e-ISSN	18618928
Language	English
Publisher	SP Gabler Verlag
Publisher Date	2009-12-01
Publisher Place	Wiesbaden
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Chief Financial Officer (CFO) Chief Executive Officer (CEO) Corporate governance Managerial turnover Corporate performance Production/Logistics Personnel Management Accounting/Auditing Organization/Planning Management/Business for Professionals Business/Management Science
Content Type	Text
Resource Type	Article
Subject	Business and International Management Economics and Econometrics

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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