Chapter 7: Conclusion: 7.2: Turnover-performance sensitivity.

The article offer information on the issues related to turnover-performance sensitivity as a part of industrial management. It mentions that the chief executive officers (CEO) can entrench himself by misreporting earnings information therefore the threat of removing a poorly performing CEO does not bring any good. It adds that the analysis shows that a low replacement performance sensitivity is not necessarily a sign of weak or captured boards.