The Quality of Corporate Governance and the Length it Takes to Remove a Poor Performing CEO. Does performance of the former firm affect a CEO's ability to find an identical with a subsequent firm?

摘要

In this paper, we investigate the effects of internal corporate governance on the length it takes to remove a CEO after the initial sign of poor firm performance. We find that firms that have a better quality of internal corporate governance are quicker to remove poor-performing CEOs. This result persists after controlling for other factors that might influence the CEO removal decision.