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Determinants of CEO Turnover in Russian Companies
This work is devoted to the study of the factors influencing the CEO turnover in Russian companies. We found that for the sample of 94 companies for the period from 2009 to 2016, the probability of the CEO turnover increases with low EBIT and decrease in EBIT. We identified that the older the CEO is, the lower probability of his turnover, however, when CEO reaches retirement age the probability of turnover increases. We examined the determinants of the CEO turnover separately for large and small companies, for companies with state participation and private companies. The probability of CEO turnover increases with the growth of independent directors’ share in the board of directors of companies without state participation. In relatively small companies, in which the state acts as owner, the probability of CEO turnover increases. Risk loving CEO has more chances of being fired, but the effect is insignificant. We also found that investors react positively to the CEO turnover, what results in the growth of the company's share price.