Resumé
| Originalsprog | Engelsk |
|---|---|
| Tidsskrift | Journal of Management and Governance |
| Vol/bind | 23 |
| Udgave nummer | 1 |
| Sider (fra-til) | 33–65 |
| Antal sider | 33 |
| ISSN | 1385-3457 |
| DOI | |
| Status | Udgivet - mar. 2019 |
Bibliografisk note
Published online 30 June 2018Emneord
- CEO characteristics
- CEO turnover
- Corporate governance
- Stock markets
- Succession planning
Citer dette
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Stock Market Reactions to CEO Succession Announcements : Inside Versus Outside Recruitment? / Rose, Caspar.
I: Journal of Management and Governance, Bind 23, Nr. 1, 03.2019, s. 33–65.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review
TY - JOUR
T1 - Stock Market Reactions to CEO Succession Announcements
T2 - Inside Versus Outside Recruitment?
AU - Rose, Caspar
N1 - Published online 30 June 2018
PY - 2019/3
Y1 - 2019/3
N2 - Sparse attention has been paid to the analysis of stock market reactions of external versus internal CEO appointments. This article seeks to fill this research gap by conducting an event study of stock market reactions to CEO succession announcements based on a sample of Danish, Swedish and Finnish firms. Danish stock market rewards externally appointed candidates, whereas the Swedish stock market reacts negatively in the case of internal CEOs. It is argued that national legal and institutional differences put different constraints on the power of CEOs. The impact of internal versus external CEO successors is therefore very much country dependent. Furthermore, it is shown that past firm performance does not significantly influence abnormal returns in all the three countries. Abnormal returns are also linked to individual CEO characteristics. The analysis shows positive significant stock market reactions only when the age difference increases between a new internal and a former CEO.
AB - Sparse attention has been paid to the analysis of stock market reactions of external versus internal CEO appointments. This article seeks to fill this research gap by conducting an event study of stock market reactions to CEO succession announcements based on a sample of Danish, Swedish and Finnish firms. Danish stock market rewards externally appointed candidates, whereas the Swedish stock market reacts negatively in the case of internal CEOs. It is argued that national legal and institutional differences put different constraints on the power of CEOs. The impact of internal versus external CEO successors is therefore very much country dependent. Furthermore, it is shown that past firm performance does not significantly influence abnormal returns in all the three countries. Abnormal returns are also linked to individual CEO characteristics. The analysis shows positive significant stock market reactions only when the age difference increases between a new internal and a former CEO.
KW - CEO characteristics
KW - CEO turnover
KW - Corporate governance
KW - Stock markets
KW - Succession planning
KW - CEO characteristics
KW - CEO turnover
KW - Corporate governance
KW - Stock markets
KW - Succession planning
UR - https://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=954927385359&rft.object_portfolio_id=&svc.holdings=yes&svc.fulltext=yes
U2 - 10.1007/s10997-018-9425-9
DO - 10.1007/s10997-018-9425-9
M3 - Journal article
AN - SCOPUS:85049205249
VL - 23
SP - 33
EP - 65
JO - Journal of Management & Governance
JF - Journal of Management & Governance
SN - 1385-3457
IS - 1
ER -