Journal of Financial Economics Vol. 20 1988
Stock prices and top management changes
Abstract
This paper studies the association between a firm's stock returns and subsequent top management changes. Consistent with internal monitoring of management, there is an inverse relation between the probability of a management change and a firm's share performance. This relation can result from monitoring by the board, other top managers, or blockholders. However, unless share performance is extremely good or bad, logit models have no predictive ability. No average stock price reaction is detected at announcement of a top management change.
- DOI
- 10.1016/0304-405x(88)90054-2
- Volume
- 20
- Pages
- 461-492
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref