International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)


The impact of comment letters on forced CEO turnover

Author(s): Xue Chang

Comment letters are an important tool for stock exchanges to supervise listed companies. This paper using LPM method to analyze the relationship between comment letters and CEO turnover from 2015 to 2020. The results indicate that: (1) there is a significant positive correlation between the current year’s comment letter and forced CEO turnover. (2) The cumulative number of comment letters received in the current year is significantly positive correlated with the forced CEO turnover. (3) We also find that the CEO in state-owned enterprises receive comment letters is less likely to be replaced than that of non-state-owned enterprises.

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