“…Coughlan and Schmidt (1985) and Warner, Watts, and Wruck (1988) are the first to show empirically that boards control top management behavior by making compensation and management termination decisions based on firm performance. Other studies further note that firms with outsider-dominated boards, lower managerial ownership, and outside blockholders are significantly more likely than firms with insider-dominated, higher managerial ownership, and a lack of outside blockholders to remove their CEOs on the basis of poor performance (Weisbach, 1988;Denis, Denis, and Sarin, 1997;Jenter and Kanaan, 2010;Gao, Harford, and Li, 2014). We contribute to that literature by introducing Closeness-to-election as a novel factor that affects CEO turnover-performance sensitivity, and by extension, other corporate policies.…”