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- Title
CEO Tenure in Taiwanese Family and Nonfamily Firms: An Agency Theory Perspective.
- Authors
Wen-Hsien Tsai; Jung-Hua Hung; Yi-Chen Kuo; Lopin Kuo
- Abstract
This study investigated the tenure of CEOs in a sample of 304 listed companies in Taiwan; 63 firms were family controlled, 241 were not. The results show that CEO turnover is significantly lower in family firms and its relationship to corporate performance is negative. CEO ownership and board ownership are not significant in explaining the length of family CEO tenure. These findings imply that family boards can still effectively replace the CEO despite relatively low ownership. From the ownership structure perspective, this study suggested that the agency theory is applicable for nonfamily firms in Taiwan, but unsuitable for family firms.
- Subjects
TAIWAN; CHIEF executive officers; LABOR turnover; FAMILY-owned business enterprises; TAIWANESE corporations; CORPORATE governance; AGENCY theory; ORGANIZATIONAL sociology
- Publication
Family Business Review, 2006, Vol 19, Issue 1, p11
- ISSN
0894-4865
- Publication type
Article
- DOI
10.1111/j.1741-6248.2006.00057.x