CEO Dismissal: Consequences for Competitors

In this study, we propose that CEO dismissal can change the strategic decision-making of CEOs at competing firms. Specifically, we suggest competitor CEOs will experience an increase in job insecurity, which motivates them to refrain from strategic risk taking. We use a sample of CEO dismissals among S&P 1500 firms to test the hypothesized responses of competitors and also test the underlying theoretical mechanism using a complementary policy capturing study with top executive