Frequent CEO Turnover and Firm Performance: The Resilience Effect of Workforce Diversity

© 2020, Springer Nature B.V. CEO turnover (or succession) is a critical event in an organization that influences organizational processes and performance. The objective of this study is to investigate whether workforce diversity (i.e., age, gender, and education-level diversity) might have a resilience effect on firm performance under the frequency of CEO turnover. Based on a sample of 409 Korean firms from 2010 to 2015, our results show that firms with more frequent CEO turnover have a lower firm performance. However, firms with more gender and education-level diversity could buffer the disruptive effect of frequent CEO turnover on firm performance to offer a benefit to the organization. Our theory and findings suggest that effectively managing diverse workforce can be a resilience factor in an uncertain organizational environment because diverse workforce has complementary skills and behaviors that can cope better with uncertainty and signals social inclusion of an organization, thus fostering a long-term exchange relationship. These findings contribute to the literature on CEO turnover (or succession) and diversity

Job satisfaction, job match quality and labour supply decisions

This paper introduces job satisfaction into neoclassical theory of labour supply. This simple integration produces non-trivial results: job satisfaction is able to reduce disutility of labour, thus increasing labour supply; also, if job satisfaction is very high, labour could generate utility, while leisure could provide disutility. In this paper, job satisfaction, and thus job match quality, is specified in terms of appropriate collocation of the worker in the workplace; in short, the higher the matching between the investment in education and the task assigned in the workplace, the higher the job satisfaction. An empirical analysis substantiates the two main predictions of this paper, namely the key role of job satisfaction in time allocation and labour supply decisions and the plausibility of our view about job satisfaction