No research has been done before in examining the relation between CEO’s turnover and firm performance. The results of the study will help board of directors and shareholders in understanding the factors influencing the CEOs’ turnover. The results can help them too to see the relationship between CEO turnover and firm performance and use that knowledge to improve the firm’s performances.

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TABLE OF CONTENT
INTRODUCTION 3
RESEARCH METHODOLOGY 4
CONCEPTUAL FRAMEWORK
DATA COLLECTION
ANALYSIS
FINDINGS AND DISCUSSION 5-8
CEO AGE AND CEO TURNOVER
CEO EDUCATION AND CEO TURNOVER
POLITICAL FACTORS AND CEO TURNOVER
CEO TURNOVER AND FIRM PERFORMANCE
CONCLUSION 8
BUSINESS STRATEGY CARD 9

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INTRODUCTION
CEOs are one of the prominent parts of companies. They are responsible for
important decisions that companies make and have an important effect on firm’s
performance. If CEOs are make mistakes, it can cause their companies a severe loss. CEO
turnover is one of the crucial problems and it can impact on wide aspects of a company
covering employees’, firms business and financial performance. It is the most important issue
in the management change inside a company.
CEO turnover can also influence outside of the company and can give impact on
shareholders, suppliers and customers. It is an influential factor on economic and political
performance of a firm.
CEOs are currently appointed by the boards and their job is to lead the companies into
profitability. CEO’s abilities are a combination of observable characteristics such as work
experience and education and unobservable characteristics such as leadership and team-
building skills.
In recent years, CEO turnover has become a widespread subject of many management
researches and there have been a lot of assumptions about relation between CEO’s turnover
and firm performance.
No research has been done before in examining the relation between CEO’s turnover
and firm performance. The results of the study will help board of directors and shareholders
in understanding the factors influencing the CEOs’ turnover. The results can help them too to
see the relationship between CEO turnover and firm performance and use that knowledge to
improve the firm’s performances.
The goal of this research paper is to investigate whether there is a relationship
between CEO turnover and the firm’s performance. The main hypothesis is to test whether
the CEO turnover is inversely related to the firm performance. The research also evaluates
two variables affecting CEO turnover and these two variables are CEO education level, age
and the years that serves in the firms.
The data used in this research was obtained from a comparison among more than 600
companies in Bursa Malaysia from 2002 to 2007.

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RESEARCH METHODOLOGY
CONCEPTUAL FRAMEWORK
DATA COLLECTION
Approximately 200 companies’ past annual reports (in Bursa Malaysia) are analysed,
looking for CEO turnover, the CEOs characteristics and shareholder of those companies. 97
companies which had CEO turnover between years 2002 to 2007 was selected. The year and
year before the CEO leaves the company is recorded together with firm performance, net
profit or net loss of the company.
ANALYSIS
Data analysis was done in SPSS using the following techniques
Descriptive Analysis analyses the CEO profile, investigate the CEO turnover, age,
educations, government linked shareholders and company net loss or profit
Pearson Bivariate Correlation Analysis Pearson correlation matrix was used to test
the correlation between the variables age , education , government linked shareholders ,
turnover and company performance
Multiple Regression Analysis procedure is used to establish pattern of relationship
between a set of predictor, the independent variables and outcome variable, the dependent
variable. Both the predictor and outcome variable variables are measured on a continuous
scale.
Linear regression is used for examining the correlation between CEO turnover and
firm performance.
CEO
Turnover
CEO Age
Government
LInk
Shareholders
Firm Performance
CEO
Education
Independent Variable Dependent Variable
Independent Variable Dependent Variable