TURNOVER is defined as CEO turnover occurring between three months and two
years, respectively, after the end of class period date[10].
The results show that the logit coefficient on LNPENALTY is positive and
significant, suggesting a positive relation between the timing of CEO turnover and the
size of the monetary penalty (LNPENALTY). The logit coefficient on EQUITY is also
positive and significant, implying that the timing of CEO turnover is positively
associated with an equity issue related securities lawsuit (EQUITY). The “effect size”
column indicates that the probability of the timing of CEO turnover being at a higher
level (earlier CEO turnover) increases by 70 percent (199.4 percent) for a unit increase in
LNPENALTY (EQUITY).