Journal Article

CEO Turnover and Ownership Structure: Evidence From the U.S. Property-Liability Insurance Industry

He, Enya, Sommer, David W.

2011

Overview

This article examines the impact of ownership structure on the relation between firm performance and chief executive officer (CEO) turnover in the U.S. property—liability insurance industry. Theoretical implications of stock versus mutual ownership structures on the performance—turnover relation are ambiguous. Our empirical results indicate that CEO turnover is less responsive to firm underwriting performance in mutual insurers compared to stock insurers. In fact, we find that while CEO turnover for stock firms is negatively related to prior performance, no such relationship is found for mutual insurers. These results hold while controlling for board structure and other relevant factors.

• Publisher: Blackwell Publishing Inc,Wiley-Blackwell,Blackwell,The American Risk and Insurance Association,American Risk and Insurance Association, Inc,Blackwell Publishing Ltd
• Subject: 1995-2004 / Business ownership / Business risks / Business structures / Chief executive officers / Eigentümerstruktur / Employee turnover / Employment / Financial performance / Führungswechsel / Guaranty funds / Hypotheses / Industrial productivity / Influence / Insurance companies / Insurance industry / Insurance premiums / Insurance providers / Insurance underwriting / Investigations / Liability insurance / Life insurance / Mutual insurance companies / Mutual insurers / Policyholders / Property liability insurance / Resignations / Return on assets / Schadenversicherung / Studies / Turnover / Underwriting firms / USA