Citation
Abstract
This paper presents a fresh perspective on chief executive officer (CEO) turnover, where the impact of CEO turnover on firm value is analysed based on whether the removal is planned or unplanned. A total of 146 announcements for ten years in Malaysia is examined using an event study method. The results indicate that, in general, CEO turnover announcements cause a significant reaction due to changes in the firm’s investment decisions. Specifically, a significant positive impact exists when CEO turnover occurs as planned. In a planned turnover, the negative news of the removal of the CEO is immediately minimised with the positive news of a CEO appointment, indicating the positive impact of establishing a CEO succession plan on firm value. This finding adds new knowledge to the current literature and allows policymakers to examine the establishment of a CEO succession policy.
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Official URL or Download Paper: http://web.usm.my/journal/aamjaf/vol16_1_2020.html
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Additional Metadata
| Item Type: | Article |
|---|---|
| Divisions: | Putra Business School School of Business and Economics |
| DOI Number: | https://doi.org/10.21315/aamjaf2020.16.1.7 |
| Publisher: | Penerbit Universiti Sains Malaysia |
| Keywords: | CEO exit; CEO turnover announcement; CEO succession policy; Event study; Efficient market hypothesis |
| Depositing User: | Ms. Nuraida Ibrahim |
| Date Deposited: | 03 Sep 2021 09:22 |
| Last Modified: | 03 Sep 2021 09:22 |
| Altmetrics: | http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.21315/aamjaf2020.16.1.7 |
| URI: | http://psasir.upm.edu.my/id/eprint/89275 |
| Statistic Details: | View Download Statistic |
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