Abstract
The aim of this study is to investigate the impact of CMO dismissal on the firm's financial performance. Regression analysis was used to test the theoretical model based on a data set of 99 CMOs leaving their firms. Drawing upon market signal and contingency theories, the study finds evidence for the positive effect of involuntary CMO departure on the firm's net market value and finds a firm's profitability moderates this effect such that the impact of CMO dismissal is larger for less profitable firms.