“…Therefore, performance improvement is more attainable if the foreign parent exerts managerial control, either implicitly or explicitly, over the subsidiary to mitigate agency problems. Departing from extant studies that examine various means through which the parent exerts managerial control over its subsidiaries (Chang & Taylor, 1999;Tan & Mahoney, 2005;Aguilera & Crespi-Cladera, 2016;Ali, Khalid, Shahzad, & Larimo, 2021), we focus on post foreign buyout CEO succession as a compelling form of managerial control. We compare post buyout performance between subsidiaries that experienced CEO succession subsequent to the foreign buyout and those that did not, and we hypothesize that it is only in the former that positive performance improvement may be attainable.…”