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An Empirical Investigation On Ceo Turnover In It Firms And Firm Performance, Peiqin Zhang, David Wierschem, Francis A. Mendez Mediavilla, Keejae P. Hong Jul 2016

An Empirical Investigation On Ceo Turnover In It Firms And Firm Performance, Peiqin Zhang, David Wierschem, Francis A. Mendez Mediavilla, Keejae P. Hong

Journal of International Technology and Information Management

Drawn upon upper echelon theory and organizational theory, this research proposes to examine the impact of CEO turnover in IT firms on firm performance in terms of both sustainable accounting performance and market performance. We find that CEO turnover is a significant determinant of firm performance, especially in IT firms. This paper contributes to the IS literature by investigating the CEO turnover impact in IT firms compared to other industries. This study also has practical implications by providing the guideline for IT firms on the CEO turnover policy. Such firms should place additional emphasis on their succession planning efforts.