CEO Turnover: Performance Measurement and Monitoring

Research on Monday Seminar
Nicolas Sahuguet
Start date

Monday, 2 Nov 2020, 16:00

End date

Monday, 2 Nov 2020, 17:00

Online (Zoom)

When deciding on managerial continuation or termination, a _rm's board can rely on the performance measure realization and active monitoring, which provides additional information about a manager's ability.


We show that more informative performance measurement can surprisingly increase the value of monitoring. This can be for several reasons. First, if the signal realization leads to negative belief updating on managerial ability yet does not trigger termination. Second, if increased precision increases the rate at which a signal that triggers termination is generated by a high ability manager faster than the rate at which it is generated by a low ability manager. Third, with a composite signal that measures several aspects of _rm value, if increasing signal precision also changes the weight on managerial ability in the signal distribution

About Nicolas Sahuguet

Nicolas has vary research interests, ranging from Political Economy to Applied Theory and Finance. He has published in many top journals, such as the Review of Economic Studies, the Journal of the European Economic Association, the Journal of Economic Theory, the Economic Journal and the Journal of Public Economics.

Requesting a bilateral

Use the registration form to register for a Zoom bilateral on Monday. Please request a bilateral before Friday 30 October, 09:00.

During the meeting

After you have registered via the registration button above, you will receive the details of the zoom session by email.

Upon joining the meeting, your microphone will be on mute. Please leave it like that and unmute it only if you want to ask a question If you wish to ask a question, please just go ahead and ask questions in the 'usual way' (ie, don’t use the chat unless you want to notify me/host of any problem related to seminar.