ARTÍCULO
TITULO

ANALYSIS OF CEO TURNOVER IN INDONESIA: DOES UNDERPERFORMED ORGANIZATION CAUSE CEO TURNOVER? CASES OF MERGER COMPANIES IN INDONESIA

Lindrianasari Lindrianasari    
Nurdiono Nurdiono    

Resumen

The results of previous research on the relationship between organizational performance and CEO turnover have been inconsistent so far. It has shown that the lower the performance, the greater the likelihood of CEO turnover. This negative relationship has been found in many subjects in organization. On the other hand, some studies found a positive relationship between job performance and turnover (in which the higher the performance, the greater the likelihood of turnover). Using a measurement of longitudinal design, this research tested organizational performance, such as stock and financial performance of top management turnover among 129 target and non-acquired firms over a five-year period. This study found significant relationships between them. The results indicated that poor organization performance triggered CEO turnover in Indonesia, especially in merger firms. This result also have an implication for Indonesian business such how organizational performance can affect a merger or an acquisition and, as a straight forward, it also affects the management of an acquired company.

 Artículos similares

       
 
Lize-Mari van Wyk,Nicolene Wesson    
AbstractOrientation: Executive remuneration remains a controversial topic. A major concern is the perceived misalignment of executive remuneration with company performance. Key performance indicators (KPIs) represent the strategic focus areas that drive ... ver más

 
Magda Bezuidenhout    
AbstractPurpose: The dissatisfaction with executive remuneration worldwide has increased because it is generally believed to have been instrumental to the 2008 Global Economic crisis. Central to this is the apparent unsatisfactory relationship between bu... ver más

 
Helena Ahulu,John MacCarthy     Pág. 52 - 58
This paper examined the effect of corporate governance structures on the market value of firms in Ghana. Quantitative data was collected on thirty-one firms listed on the Ghana Stock Exchange from 2009 to 2018 to predict the effect of corporate governanc... ver más

 
Jose B. Betancourt Ramirez,Diógenes Lagos Cortés,Gonzalo Gómez-Betancourt     Pág. 107 - 123
Ownership is usually a system assumed implicit in the dynamics of management of enterprises, but it actually deserves more attention than a periodic control in the yearly general shareholder´s assembly. Empowerment of owners is required given the magnitu... ver más

 
Rudi Rusli,Yuswar Zainul Basri,Willy Arafah     Pág. 96 - 106
The results of this study give us a big picture that the role of the leader in an organization is very important, including companies as large as the SOEs holding company. Companies that have good governance will have an impact on company performance dir... ver más