| Summary: | ABSTRACT
CEO is the most eye-catching person to the investors, scholars, and practitioners. The impact of changing a new CEO on the movement in the value of the relevant share price is studied in this dissertation. An event study has been applied to capture the effect of CEO change event through a cross-country and industry level with unique hand-collected data. This work extends existing work that focuses on CEO succession issue.
Main findings of this dissertation are: UK and Oceania investors generally view CEO change as a positive event, which relevant share price increase after that change, while investors from west Europe are indifferent with the CEO change announcement or news. However, the North American stock markets (US and Canada) basically view CEO change as negative information to the company and its security. Securities from financials industry show positive reactions to CEO change, while securities from consumer discretionary industry and utilities industry present negative reactions to CEO change event. The largest abnormal return of a CEO event-related share price appears on the day following announcement date. New information will be incorporated into price slowly in 5 to 7 trading days whatever in which country.
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