A. A. Muravyev, O. V. Talavera, O. A. Bilyk, B. V. Grechaniuk. Firm Performance and Managerial Turnover: The Case of Ukraine
V.7, N4, 2009
The paper investigates whether and how turnover of senior managers in Ukrainian firms is related to firm performance. Using a novel dataset of Ukrainian joint stock companies covering the years 2002 to 2006, the authors find statistically signifi cant negative association between the likelihood of managerial turnover and the past performance of firms measured by return on assets and return on sales. Our analysis suggests that the strength of the turnover-performance relationship does not depend on factors such as managerial ownership and supervisory board size. However, we do find signifi cant entrenchments effects associated with ownership by managers. Overall, our analysis suggests that by the early 2000s, Ukraine has established basic corporate governance mechanisms that facilitate improvements in firm performance.
Keywords: corporate governance, managerial labor market, transition, Ukraine.