Discussion Paper Series 2017 #03: "Changes in the Corporate Governance System and Presidential Turnover"

Abstract The article aims to shed light on how changes in the corporate governance system for Japanese firms since the 1990s have influenced presidential turnover. We analyzed the determinants of presidential turnover between 1990 and 2013 for a random sample of 500 firms listed on the First Section of the Tokyo Stock Exchange. Though our analysis found that presidential turnover sensitivity to corporate performance has not changed, we did show that ROE and the stock return are displacing ROA..