Five-Star Ratings and Managerial Turnover: Evidence from the Nursing Home Industry

The government-sponsored Five-Star Quality Rating System (FSQRS) aggregates multiple measures of nursing home quality into a standardized overall rating. Previous research has found that the FSQRS affected consumer demand and correspondingly motivated a strategic shift toward competing for higher ratings, most notably among nursing homes in more competitive markets. The primary objective of this article is to provide evidence on whether it produced a complementary change in the weight placed on quality ratings in senior management retention decisions. Using the Florida nursing home administrator files from 2007 to 2013, our analysis reveals that the FSQRS motivated a substantial and significant increase in the sensitivity of administrator turnover to star ratings, particularly in more competitive nursing home markets (JEL I18, L15, J63, G24, G34).

Examining the pull, the push, and their simultaneous effects on managerial turnover

PurposeThis paper aims to examine the economic and psychological mechanisms in turnover at the managerial level. The paper investigates how (1) the ease of moving posed by alternative jobs (i.e. the economic mechanism) and (2) the desire to move due to low job satisfaction (i.e. the psychological mechanism) simultaneously influence top management team (TMT) turnover and these managers' subsequent job position and pay.Design/methodology/approachUsing 25 years of panel data on more than 2,000 top managers in the United States, the paper utilizes fixed-effects logistic regressions and the ordinary least squares model to test the hypotheses.FindingsThe authors find that CEO awards (an economic mechanism) and low compensation (a psychological mechanism) independently have positive effects on turnover. Turnover due to the economic mechanism leads to a higher position and pay, whereas turnover due to the psychological mechanism does not guarantee the same outcome. Further, when examining how pay dissatisfaction influences turnover simultaneously with CEO awards, the authors find that managers with the highest pay leave their firm, and not those with the lowest pay.Originality/valueThe paper employs the pull-and-push theory in the employee turnover literature and applies it to the top management team literature. By doing so, this paper contributes original insights to how economic and psychological mechanisms simultaneously affect managerial turnover and its subsequent outcomes.

Top Management Turnover and Its Effect on Employee Absenteeism: Understanding the Process of Change

This study investigates the effect of top management turnover in public organizations on employee absenteeism, examining school principal turnover in public primary schools. While previous research has focused on the impact of principal turnover on school performance, we analyze how principal turnover influences employee absence. A longitudinal study of 481 employees is conducted. Findings indicate that managerial turnover at schools does indeed influence absence. Absence is particularly high after a new top manager has taken office, and especially for employees where the gap between resignation of one manager and another taking office is short. Findings also show that the absence effect of a new top manager diminishes over time.

Do Management Interventions Last? Evidence from India

We revisited Indian weaving firms nine years after a randomized experiment that changed their management practices. While about half of the practices adopted in the original experimental plants had been dropped, there was still a large and significant gap in practices between the treatment and control plants, suggesting lasting impacts of effective management interventions. Few practices had spread across the firms in the study, but many had spread within firms. Managerial turnover and the lack of director time were two of the most cited reasons for the drop in management practices, highlighting the importance of key employees. (JEL D22, D24, L67, L84, M11, O14)