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Why might a board replace a ceo even if it does not expect

1. Why might a board replace a CEO even if it does not expect to ?nd a replacement of higher quality? What are the implications of this for observed changes in ?rm performance?

2. Why might the results of event studies of the announcement of CEO turnover provide inconclusive or even misleading evidence about the impact of CEO turnover on ?rm performance? Do event studies of turnover announcements provide useful information about the effect of turnover on performance?

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Corporate Finance: Why might a board replace a ceo even if it does not expect

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