CEO Turnover in Russian Corporations

Abstract

The paper examines CEO turnover in Russian corporations, provides an overview of the relevant literature, describes the research method and presents empirical results. The methodological basis of the study is the theories of strategic and corporate management, principal-agent problem, etc. The literature review allows us to characterize the mechanisms of CEO turnover. The author distinguishes the factors behind CEO turnover, such as characteristics of the board of directors, business ownership structure, stock yield and managerial entrenchment. The information base of the study is RUSLANA database. The article uses a database formation technique that takes into account the results of previous research. An analysis of CEO turnover is founded on the following information: CEO appointment date, the number of positions that a top manager holds in different companies and whether they is the company’s owner. The paper conducts an empirical analysis of the characteristics of Russian corporations and their CEOs and determines the intensity of CEO turnover. It reveals that, over the past 10 years, nearly 18 percent of corporations in Russia have not changed their CEOs, which may exhibit the signs of managerial entrenchment.

Keywords

• CEO TURNOVER
• MANAGERIAL ENTRENCHMENT
• CORPORATION
• CORPORATE GOVERNANCE
• BOARD OF DIRECTORS
• AGENCY PROBLEM