Management Accounting Section Midyear Meeting

The Long-Term Effects of Turnover: Evidence from College Football Head Coaches

• In Event: Spillover Effects

Abstract

We examine the long-term effects of executive turnover and factors that moderate this relationship. We test our hypotheses in the college football setting by analyzing the turnover of head coaches. Extending the disruption perspective of turnover, we provide evidence in support of substantial disruption costs around turnover, and we show that the negative effects of turnover are more pronounced and have a longer duration following involuntary turnover. Additional tests show that replacement executives with certain characteristics can partially offset the negative long-term effects of turnover by reducing disruption costs and information asymmetry. We also consider cyclical turnover, providing additional insight into the disruption effects surrounding executive turnover.

Authors

• Will Demere, University of Missouri

• Christopher Wertheim, University of Missouri