Within the context of agency theory, effect of firm growth opportunities on managerial turnover in Turkey

This study is designated to be an empirical assessment of relations between top managerial (Chief Executive Officers – CEO's or General Managers) turnover, firm growth prospects, financial performance and firm size in Turkish Public Companies. Following the study of Anderson et al. (2018), it is postulated that increase in the quality of growth opportunities, their arrival frequency and firm size increases the probability of managerial turnover and an increase in firm financial performance effects probability ıf turnover conversely. Excluding financial firms, for 233 firms which fulfilled econometric analysis requsites, relations between top managerial turnover and firm growth prospects, new growth opportunities, firm performance and firm size were assessed by running a probit regression over a period between 2003 and 2020. Moreover, firms listed in BİST 100 Index, manufacturing sector and firms having common share stockholders' vote rate greater than 30 % (it is the average rate of study sample) and having non-shareholder CEO's who are not in the board were additionally analyzed. Results were mostly consistent with original study. Dissimilarities were discussed through original paper's theoretical implications and literature of Agency Theory. There seems to be an evidence for a relation between top managerial turnover, quality of firm growth prospects and new growth opportunities, performance and firm size. While an increase in the quality of firm growth prospects, new growth opportunities and firm size increases the probability of managerial turnover, as an expected result, increasing financial performance decreases that probability. Keywords: Agency Theory, Managerial Turnover, Firm Growth, Firm Performance.