A Simple Model of Optimal Ceo Turnover

نویسندگان

  • Jeff Brookman
  • Paul D. Thistle
چکیده

We examine the board of directors’ problem of determining when to terminate a CEO. The optimal policy takes a simple form – the CEO is fired if profits fall below a critical value. The analysis yields the optimal probability of CEO turnover. JEL Code: G34

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تاریخ انتشار 2006