We study turnover among executives and directors in companies owned by Danish industrial foundations, which are held to be long term owners. Executives are members of the management board (direktionen), whereas directors a members of the supervisiory board (bestyrelsen). As expected, we find that both director and executive turnover is lower in foundation-owned companies. Foundation-owned companies are more likely to replace directors, but not executives, when performance is bad (negative profits). Thus, we find some evidence of long-termism in foundation-owned companies.
|Center for Corporate Governance. Copenhagen Business School
|Udgivet - 2 jun. 2014