Faculty Publications
Turnover Threat And CEO Risk-Taking Behavior In The Banking Industry
Document Type
Article
Keywords
Board independence, CEO risk-taking, CEO turnover
Journal/Book/Conference Title
Journal of Banking and Finance
Volume
96
First Page
87
Last Page
105
Abstract
We examine how the threat of turnover affects bank CEOs’ risk-taking behavior. Using a sample of 212 U.S. banks from 1995 to 2010, in contrast with prior studies focusing on non-banking firms, we find a non-monotonic relationship between CEO turnover threat and CEO risk-taking behavior in the banking industry. Bank CEOs increase their risk-taking when the perceived turnover threat is moderate but reduce risk-taking when turnover threat is more imminent. This effect tends to concentrate on banks with a majority of independent directors.
Department
Department of Finance
Original Publication Date
11-1-2018
DOI of published version
10.1016/j.jbankfin.2018.08.007
Repository
UNI ScholarWorks, Rod Library, University of Northern Iowa
Language
en
Recommended Citation
Chen, Zhongdong and Ebrahim, Alireza, "Turnover Threat And CEO Risk-Taking Behavior In The Banking Industry" (2018). Faculty Publications. 640.
https://scholarworks.uni.edu/facpub/640
