The Impact of CEO Turnover on Capital Structure Stability

Capital structure is a key financial aspect of corporate management, referring to the composition and ratio of a company's capital value, which results from the company's financing activities. Numerous empirical studies have been conducted on capital structure; however, a relatively new branch of capital structure, namely capital structure stability, has not been adequately explored. One of the factors influencing both capital structure and its stability is CEO turnover. Therefore, this study investigates the impact of CEO turnover on capital structure stability. To achieve this, a hypothesis was formulated. In order to test the hypothesis, a sample of ۱۰۵ companies listed on the Tehran Stock Exchange was selected using a systematic elimination method, covering a six-year period from ۲۰۱۷ to ۲۰۲۲. For data analysis and hypothesis testing, multivariate regression models with panel data methodology were employed. The results of the study showed that CEO turnover has a significant and negative effect on capital structure stability. Furthermore, the results indicated that the continuity of CEO turnover has a significant and negative impact on capital structure stability.

کلیدواژه ها:

CEO turnover ، capital structure ، capital structure stability