Market Reaction to CEO Turnover: Empirical Evidence from Fortune 500 Firms

Global Finance Review

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Field Value
 
Title Market Reaction to CEO Turnover: Empirical Evidence from Fortune 500 Firms
 
Creator Karki, Dipesh
Ghimire, Binam
 
Subject JEL Code: G14, G15, G11
 
Description This paper applies event study analysis to explore the impact of change in leadership on the market return of Fortune 500 firms. The study analyzes various market reaction following the announcement of CEO's departure along with the circumstances leading to it. The results show that on the occurrence of the event, market reacts positively in line with “ability hypothesis”. Especially inside succession comparatively found to provide better market reaction than outside succession. However the type of departure showed no statistically significant abnormal returns Further abnormal return prior to the event was witnessed suggesting information leak. Overall the study is consistent with Efficient Market Hypothesis.
 
Publisher PiscoMed Publishing Pte Ltd
 
Contributor
 
Date 2019-09-21
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion

 
Format application/pdf
 
Identifier http://ojs.piscomed.com/index.php/GFR/article/view/615
10.18282/gfr.v1i1.615
 
Source Global Finance Review; Vol 1, No 1 (Published); 46-56
 
Language eng
 
Relation http://ojs.piscomed.com/index.php/GFR/article/view/615/574
http://ojs.piscomed.com/index.php/GFR/article/downloadSuppFile/615/100
 
Rights Copyright (c) 2019 GLOBAL FINANCE REVIEW
http://creativecommons.org/licenses/by-nc/4.0
 

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