Excessive managerial entrenchment, corporate governance, and firm performance

This paper investigates the differential impact of positive and negative excessive managerial entrenchment on CEO turnover-performance sensitivity, compensation, firm performance. We measure degree using E-index introduced by Bebchuk et al. (2009). Our findings suggest that an increase in excess reduces likelihood turnover due to poor also show a association between compensation as managers gain more power authority when they are entrenched. On other hand, has inverse correlation with performance value. Overall, we propose converse board monitoring shareholders’ welfare.