Abstract
Despite extensive research on factors influencing the turnover of Chief Executive Officers
 (CEOs), studies focusing specifically on CEO succession within business group-affiliated
 firms, are relatively scarce. Additionally, while some research has investigated the impact
 of business group affiliations on the performance-turnover relationship, the findings have
 been inconsistent. To address this gap, this study focuses on the internal markets exclusive
 to firms affiliated with business groups. Building on existing literature on CEO succession
 and business groups, I hypothesize that the magnitude of internal transactions in products
 and services diminishes the effect of firm performance on CEO turnover. Further, I
 hypothesize that the extent of internal capital investment from other affiliated firms and
 the size of the internal labor market intensify this effect. The analysis, based on CEO
 turnovers in listed non-financial firms in business groups that were subject to mutual
 investment restrictions from 2010 to 2015, supports the hypotheses. This study contributes
 to the existing literature on CEO succession in business groups by emphasizing that the
 groups' internal environment is pivotal in shaping decision-makers' perceptions and
 evaluations during the succession process.
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