CEO And Director Turnover In Venezuela

The aim of this research is to continue the effort to achieve a better understanding of corporate governance structures and mechanisms outside the U.S. by looking at a specific emerging economy: Venezuela. In a country characterized by an underdeveloped financial market, a weak legal system, relatively poor law enforcement, and high ownership concentration, the authors address the question of whether the existing corporate governance system works at all in Venezuela. In particular, they are interested in studying the following two questions which constitute a necessary condition for any corporate governance system to work: Are poor performing CEOs more likely to be removed compared to good performing CEOs? What is the role of the board, to monitor the CEO or to serve as an advisor?