Essays in corporate finance /

Abstract

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT AUTHOR'S REQUEST.] [1] NEW CLASSIFICATIONS FOR CHAIRMEN OF THE BOARD -- I DID IT MY WAY. In this paper I determine whether a new classification of chairmen (former CEOs) should be added to the traditional current CEO and independent categories. I examine the impact the three categories of chairmen have on firm performance and whether CEO compensation differs between the three categories. If firms with chairmen who are former CEOs have significantly different firm performance or CEO compensation than the other two groups, a third category of chairmen (former CEOs) should be used in future research. The findings shed light on the value of having former CEOs control the board, and should influence the results of studies using chairmen as a control variable. I find that chairmen who are former CEOs are significantly different than current CEOs and independent chairman, and should be separated into their own category. Firms with chairmen who are former CEOs have highest firm performance. These firms also pay less in CEO compensation than firms with current CEOs/chairmen but more than firms with independent chairmen. [2] A TEMP IN THE CORNER OFFICE : THE IMPACT OF INTERIM CEOS ON FIRM PERFORMANCE. This paper examines the impact an interim CEO's previous experience and tenure length have on accounting- and market-based firm performance. I also examine the number of significant changes an interim CEO makes to the firm and the impact of those changes. I find that the prior experience an interim CEO has does not have a significant impact on firm performance. Interim CEOs are significantly less likely to make major changes to the firm than their predecessors; however, some of the changes they make have a significant impact on firm performance.