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The Effects of Executive, Firm, and Board Characteristics on Executive Exit
Author(s) -
BeckerBlease John,
Elkinawy Susan,
Hoag Christopher,
Stater Mark
Publication year - 2016
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/fire.12106
Subject(s) - executive compensation , independence (probability theory) , accounting , business , differential (mechanical device) , demographic economics , econometrics , statistics , corporate governance , economics , mathematics , finance , engineering , aerospace engineering
Abstract We estimate a hazard model of the probability of top corporate executives exiting their firms over the period 1996–2010. Our main findings are that: (1) female executives have greater likelihoods of exit than males, (2) the likelihood of exit increases with the independence of the board and decreases with the fraction of the board that is female and the average age of board members, and (3) a higher percentage of independent directors on the board lowers the probability of exit more for females than for males. Further, controlling for exit risk reduces the well‐documented compensation differential between men and women.