China has moved rapidly from a socialist planned economy to a market economy.As a result,many enterprises in China are seeking talented top management to increase their performance and decrease their default risk.Stud...China has moved rapidly from a socialist planned economy to a market economy.As a result,many enterprises in China are seeking talented top management to increase their performance and decrease their default risk.Studies abound regarding top management turnover and its relationship with firm performance,however,few studies have connected top management turnover with firm default risk.In China,a market with extensive financial fraud,firm default risk is an important factor and thus we explore this relationship in the Chinese securities market.Our results indicate that firms with higher default risk are more likely to change their top management in the next financial reporting period.In addition,following changes in top management,such firms default less than other companies.展开更多
This paper demonstrates that the alternative data of manager turnover can provide investors and policymakers with a more timely and available predictor of new firm performance beyond the traditional financial informat...This paper demonstrates that the alternative data of manager turnover can provide investors and policymakers with a more timely and available predictor of new firm performance beyond the traditional financial information.This paper constructs a comprehensive alternative dataset of manager turnover that covers a near-population sample of new firms in the United Kingdom.It shows that manager departures and appointments can predict new firms’survival and growth,even after controlling for firm financials.In addition to the within-firm prediction,the average manager turnover in other firms of the same industry can cross-predict individual firm performance.The within-firm prediction is more pronounced for non-family firms,smaller firms and firms incorporated during or after the Great Recession,and the cross-firm prediction is stronger for younger firms.This paper sheds light on the power of alternative data in the prediction of firm performance,particularly for new firms that often do not have available information.展开更多
文摘China has moved rapidly from a socialist planned economy to a market economy.As a result,many enterprises in China are seeking talented top management to increase their performance and decrease their default risk.Studies abound regarding top management turnover and its relationship with firm performance,however,few studies have connected top management turnover with firm default risk.In China,a market with extensive financial fraud,firm default risk is an important factor and thus we explore this relationship in the Chinese securities market.Our results indicate that firms with higher default risk are more likely to change their top management in the next financial reporting period.In addition,following changes in top management,such firms default less than other companies.
文摘This paper demonstrates that the alternative data of manager turnover can provide investors and policymakers with a more timely and available predictor of new firm performance beyond the traditional financial information.This paper constructs a comprehensive alternative dataset of manager turnover that covers a near-population sample of new firms in the United Kingdom.It shows that manager departures and appointments can predict new firms’survival and growth,even after controlling for firm financials.In addition to the within-firm prediction,the average manager turnover in other firms of the same industry can cross-predict individual firm performance.The within-firm prediction is more pronounced for non-family firms,smaller firms and firms incorporated during or after the Great Recession,and the cross-firm prediction is stronger for younger firms.This paper sheds light on the power of alternative data in the prediction of firm performance,particularly for new firms that often do not have available information.
