Firm performance and CEO turnover: the moderating role of CEO attributes

Aruoriwo Marian Chijoke-Mgbame*, Agyenim Boateng, Chijoke Oscar Mgbame, Kemi C. Yekini

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


Purpose: This study aims to examine the effects of firm performance on chief executive officer (CEO) turnover and the moderating role of CEO attributes on the firm performance–CEO turnover relationship. Design/methodology/approach: Probit regressions were used to examine the relationship between various CEO attributes and CEO turnover and the moderation effect of firm performance on the CEO attributes–CEO turnover relationship. The sample comprises firms from the FTSE 350 Index covering the period 1999–2018. Findings: The results indicate that firm performance negatively and significantly impacts CEO turnover. Further analysis reveals that selected CEO attributes, namely, CEO internal experience, CEO network size and CEO age, moderate the relationship between firm performance and CEO turnover. Specifically, CEO internal experience and performance combine to reduce the likelihood of CEO turnover. However, CEO network size and age when combined with firm performance increase the likelihood of CEO turnover. Practical implications: The results imply that boards should pay more attention to CEO attributes in their decisions to hire and fire executive managers as these factors may affect a wide variety of firm outcomes. Originality/value: This paper makes key contributions to the CEO turnover and corporate governance literature by providing evidence of key factors other than performance that can affect the CEO dismissal decision. Specifically, this study shows that CEO attributes such as CEO internal experience, CEO networks and CEO age far outweigh the importance of performance as a factor influencing CEO turnover decisions.

Original languageEnglish
Pages (from-to)1778-1801
Number of pages24
JournalCorporate Governance (Bingley)
Issue number7
Early online date16 Jun 2023
Publication statusPublished - 3 Nov 2023


  • CEO attributes
  • CEO turnover
  • Firm performance
  • Resource dependency theory
  • Upper echelon theory


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