CHIEF EXECUTIVE TURNOVER AND FIRM PERFORMANCE IN JAPAN

In this article, I examine CEQ turnover and its relationship to firm p erformance in Japan by using a newly assembled longitudinal data set. The longitudinal data allow me to analyze the effect of long-run perfo rmance of individual executives on their turnover. I find that while c ontemporaneous poor sales growth and employment growth increase turnov er probability, other contemporaneous firm performance measures are no t significantly related to CEO turnover. On the other hand, the long-r un performance measures of individual CEOs (the annualized average of cumulative performance as a CEO) are significantly related to turnover . (C) 1997 Academic Press.