This paper investigates how managerial expertise — specifically, industry expertise — affects firm value through divestiture. Using CEOs' managerial experiences in industries throughout their careers as a measure of their industry expertise, I find that CEOs in diversified conglomerates are...

We propose and test a new explanation for forced CEO turnover, and examine its implications for the impact of firm performance on CEO turnover. Investors may disagree with management on optimal decisions due to heterogeneous prior beliefs. Theory suggests that such disagreement may be persistent...