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Proving What We Already Knew Department

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CEO effect on firm performance mostly due to chance

A Texas A&M University researcher calls into question the common notion that CEOs have a large effect on firm performance. Though previous research contends that the so-called "CEO effect" is substantial, a study by Professor of Management Markus Fitza, whose research centers on firm performance, suggests that most of the performance attributed to CEOs could actually be due to chance -- to factors outside of CEOs' control.

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