Antecedent And Consequences From Ceo Turnover Rate In Indonesia

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 5

Year of Publication : 2019

Authors : Mardianto, Willy Arafah

10.14445/23939125/IJEMS-V6I5P108

How to Cite?

Mardianto, Willy Arafah, "Antecedent And Consequences From Ceo Turnover Rate In Indonesia," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 5, pp. 47-51, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I5P108

Abstract:

This study aims to explore the antecedent factors of CEO turnover rates in Indonesia and their impact on the performance of companies listed on the Indonesia Stock Exchange. The originality of this study was to use political connection as one of the antecedents to measure the consequences of CEO turnover in influencing company performance. Very little research in Indonesia or in ASEAN countries uses CEO turnover as a mediating variable in measuring the relationship between political connection and company performance. This study uses partial least square analysis to test all research hypotheses. Research data in the form of secondary data taken from financial statements and annual reports of companies listed on the Indonesia Stock Exchange from the period 2012 to 2017. The results showed that political connection and family ownership had a significant effect on CEO turnover rates. In addition, political connection, family ownership and CEO turnover have a significant effect on company performance. The mediating effect of the CEO turnover rate is able to strengthen the significant influence of political connection and family ownership on company performance.

Keywords:

CEO turnover rates, company performance, political connection

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