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This paper develops a country-level measure of CEO discretion based on a survey of 561 strategy consultants from 35 countries. Unlike measures previously used in the literature that focus on legal constraints on managerial behavior, our measure reflects the multidimensionality of managerial discretion. Consistent with managerial discretion being associated with performance variability, our measure explains cross-country differences in variability of accounting-based and market-based measures of firm performance. In contrast, indirect measures used in prior literature do not have significant explanatory power. Taken together, these findings suggest that our measure has the potential to open up new avenues of research related to country differences of CEO discretion and their effects on firm outcomes in finance and economics. Key words: Managerial Discretion; Performance Variability; Cross-Country