Title: What causes abrupt and massive change in the top management of a successful entity in an emerging economy
Authors: Md. Mamunur Rashid
Addresses: Department of Business Administration, Stamford University Bangladesh, 44 (744 Old), Satmasjid Road, Dhanmondi, Dhaka-1209, Bangladesh
Abstract: The paper examines the leading causes of abrupt and massive changes in the top management in a successful entity in an emerging economy - Islami Bank Bangladesh Limited. The paper is based on an extensive case study method. The study uses both primary and secondary sources of data. Primary data include direct conversation with various stakeholders of the bank using unstructured questionnaire. The data were collected before and after the changes in the top management. The study found the leading causes of reshuffle in top management including chairman, vice-chairman and chief executive officer are: pressure from government, involvement of a political party with the bank management - Bangladesh Jamaat-e-Islami an opposition to the present government, lack of transparency of corporate social responsibility expenditures, and pressure of foreign investors. However, no negative impacts were seen within the first month of the changes on stock prices of the bank in the country's two stock markets.
Keywords: corporate governance; Islami Bank; Bangladesh; massive change; board of directors; politics; turnover; top management; government; private bank.
International Journal of Managerial and Financial Accounting, 2018 Vol.10 No.2, pp.105 - 127
Received: 08 May 2017
Accepted: 01 Feb 2018
Published online: 10 May 2018 *