Abstract
This study examines the effect of economic and social performance on CEO forced
turnover in Japanese and Chinese firms. The board of directors prioritize performance
as a crucial factor in evaluating CEO behavior, leading to replacement of CEOs with
poor performance. Previous research has primarily focused on economic performance,
such as Return on Assets and Price Earnings Ratio, in relation to CEO forced turnover.
this study expands on this by investigating the impact of social performance on CEO
forced turnover. The results show that in China, poor social performance does not cause
CEO forced turnover, but good social performance reduce it. Conversely, in Japan, poor
social performance leads to relatively higher rate of CEO forced turnover.
