CEO Turnover in the Wake of Perceived Likelihood of Intervention By The Board Of Directors

The central puzzle surrounding the sensitivity between firm performance and CEO turnover lies in the presumable efficiency of the boards of directors to monitor the CEOs’ decision making, to determine the CEOs’ performance and compensation, and to retain or to fire the CEOs. Further scholarly work examines other exogenous factors (i.e., external shocks) or observable structural and individual characteristics that undermine the judgment and...