Document Type

Article

Publication Date

11-2025

Department 1

Management

Abstract

The role of CFO has become increasingly important since the enactment of SOX 2002. The existing literature suggests that CFOs tend to leave office within 6 to 12 months of a CEO’s departure, but studies addressing whether forced and voluntary turnover behave differently are unexplored. There is also no attempt to explore whether financial performance or institutional shareholding play moderating roles in mitigating successive CFO and CEO turnovers. These scholars find that forced (voluntary) CEO turnover has a higher significant marginal effect on forced (voluntary) CFO turnover. They also find that, in general, higher financial performance and institutional ownership play significant moderating roles in the relationship between CEO turnover and CFO turnover. Their study indicates a strong disciplinary mechanism by the board due to its intention to signal that it is concerned about the firm's reputation. The voluntary turnover of a CFO as a result of a voluntary turnover of a CEO also indicates that a CFO considers their position to survive reputational damage.

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

DOI

10.1080/1351847X.2025.2585966

ISBN/ISSN

1466-4364

Version

Version of Record

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