On the choice and replacement of chief financial officers

摘要: Abstract This paper provides empirical evidence regarding why firms replace their CFOs. Empirical tests are based on a sample of 2,227 CFO appointments over the 1984–1997 time period. Key findings reported in are: (a) external succession rate is markedly higher than CEO rate, (b) incidence retirement less common for serving CFOs as compared to top executive, (c) turnover preceded by negative excess returns, (d) decline operating return assets pre-period, (e) announcements associated with significant stock price reaction when old quits and firm replaces an internal appointment, (f) abnormally high turnover. Overall, consistent hypothesis that turnovers disciplinary. Evidence also rapid sales growth accompanied weak performance leads bring outside talent.