The Governance of Industrial Foundations: Executive and Director Turnover

Christa Børsting, Johan Kuhn, Thomas Poulsen, Steen Thomsen

    Research output: Working paperResearch


    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.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherCenter for Corporate Governance. Copenhagen Business School
    Number of pages17
    Publication statusPublished - 2 Jun 2014

    Bibliographical note

    Previous version of this paper was presented at a seminar held by Center for Corporate Governance, Copenhagen Business School, 1. December 2013

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