The impact of credit rating changes on CEO turnover.

In an effort to contribute to the literature regarding credit ratings’ effects on corporate governance theories, this study examines the impact of credit rating changes on one particular aspect of corporate governance: CEO turnover in North America. Our data set consists of firms in the S&P Comp...

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Main Authors: Foo, Wei Ling., Heng, Jing Hui., Tan, Liying.
Other Authors: Angie Low An Chee
Format: Final Year Project
Language:English
Published: 2013
Subjects:
Online Access:http://hdl.handle.net/10356/51348
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-513482023-05-19T06:16:18Z The impact of credit rating changes on CEO turnover. Foo, Wei Ling. Heng, Jing Hui. Tan, Liying. Angie Low An Chee Nanyang Business School DRNTU::Business::Finance::Corporate governance In an effort to contribute to the literature regarding credit ratings’ effects on corporate governance theories, this study examines the impact of credit rating changes on one particular aspect of corporate governance: CEO turnover in North America. Our data set consists of firms in the S&P Composite 1500 index from the period of 1992 to 2010, which we filtered, winsorised and regressed to seek answers for the research objectives and our results show that credit rating changes do affect CEO turnover; specifically, a worsening of credit ratings leads to increased CEO turnover. We attribute this finding to the fact that credit ratings are used as an evaluation tool for CEO performance: a credit rating upgrade indicates good management and the CEO may hence be rewarded; conversely, credit ratings downgrades may indicate incompetency and the CEO is punished by forced turnover. BUSINESS 2013-03-28T08:04:46Z 2013-03-28T08:04:46Z 2013 2013 Final Year Project (FYP) http://hdl.handle.net/10356/51348 en Nanyang Technological University 35 p. application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic DRNTU::Business::Finance::Corporate governance
spellingShingle DRNTU::Business::Finance::Corporate governance
Foo, Wei Ling.
Heng, Jing Hui.
Tan, Liying.
The impact of credit rating changes on CEO turnover.
description In an effort to contribute to the literature regarding credit ratings’ effects on corporate governance theories, this study examines the impact of credit rating changes on one particular aspect of corporate governance: CEO turnover in North America. Our data set consists of firms in the S&P Composite 1500 index from the period of 1992 to 2010, which we filtered, winsorised and regressed to seek answers for the research objectives and our results show that credit rating changes do affect CEO turnover; specifically, a worsening of credit ratings leads to increased CEO turnover. We attribute this finding to the fact that credit ratings are used as an evaluation tool for CEO performance: a credit rating upgrade indicates good management and the CEO may hence be rewarded; conversely, credit ratings downgrades may indicate incompetency and the CEO is punished by forced turnover.
author2 Angie Low An Chee
author_facet Angie Low An Chee
Foo, Wei Ling.
Heng, Jing Hui.
Tan, Liying.
format Final Year Project
author Foo, Wei Ling.
Heng, Jing Hui.
Tan, Liying.
author_sort Foo, Wei Ling.
title The impact of credit rating changes on CEO turnover.
title_short The impact of credit rating changes on CEO turnover.
title_full The impact of credit rating changes on CEO turnover.
title_fullStr The impact of credit rating changes on CEO turnover.
title_full_unstemmed The impact of credit rating changes on CEO turnover.
title_sort impact of credit rating changes on ceo turnover.
publishDate 2013
url http://hdl.handle.net/10356/51348
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