Top management team turnover in Brazil: the role of corporate governance in family-controlled companies

This study analyzes the relation between firm performance and top management team turnover, moderated by corporate governance and control variables. We use a unique dataset of CEO and executive turnover of Brazilian firms from 2010 to 2017, including companies that voluntarily adopt good governance practices through listing on “Novo Mercado” segment. We document a significant growth in top management turnover activity throughout the sample period and find a negative relation between firm performance and CEO turnover. We also document that family firms listed in the “Novo Mercado” segment have greater CEO turnover performance sensitivity than family firms not listed in “Novo Mercado.”