부산대학교 도서관

This study extends Chen, Lu, and Sougiannis (2012) by investigating whether the degree of cost asymmetry is a function of turnover type (routine versus non-routine executive changes), and whether the impacts of executive turnover on cost stickiness rely on whether the successor comes from inside or outside the organization. Using a sample of the Taiwan Stock Exchange Corporation and the GreTai Securities Market listed companies for 2005 to 2015, out results clearly demonstrate that, on average, the degree of cost asymmetry is lower in the year prior to a routine CEO turnover and lowest in the year prior to a non-routine CEO turnover. Further, our results show that the degree of cost asymmetry is lower in the year surrounding routine executive change and outside succession and higher in the year surrounding non-routine executive change and inside succession.