Determining Factors on CEO Turnover and Its Impact on Financial Performance in Turkey [in Turkish]

The main responsibility of the CEO is to create and execute effective strategies that will achieve the goals and objectives determined in line with the company’s vision and mission.The purpose of this study is to determine financial factors that determine CEO turnover and to determine the effects of CEO turnover on the financial performance of the firms traded in Istanbul Stock Exchange (BIST). In the research, data from 136 firms trading in the BIST Manufacturing Industry Index between the dates 2004-2012 was used. In the empirical analysis, logistic regression method was used with the purpose of determining the factors causing CEO turnover. The paired t-test was used for determining the differences before and after the CEO turnover periods. At the end of the analysis; it was determined that reduction of accounting and market based performance indicators; increase of the debt burden, decrease of the sales and assets of BIST Manufacturing Industry Index firms increase the probability of CEO turnover. However, it was determined that CEO turnover adversely affects the companies’ profitability.