Project Participants

The impact of corporate takeovers on management restructuring (NASDAQ)


The objective of the study is to measure the impact of stock market announcements of new CEO hirerings/leavings. This is done by examing the abnormal returns prior to and after such announcements. Abnormal returns equal actual returns on day t minus expected returns on day t. This study tests the hypothesis that stock markets reward firms, which hire an outsider as new CEO. A plausible explanation is that such a person may bring new initiatives without being constrained by previous actions/strategies. On the other hand, insiders may posses valuable firm specific knowledge. Morover the analysis also investigates if stock market reactions coinside with succequent performance using various financial performance measures. Finally, the aim is to analyse CEO leavings linking them to foirm variables such as; size, industry, country effects etc.. All data is obtained from listed companies on the NASDAQ OMX Stock Exchange. In short, the study offers valuable insights to both academia and businesses of what create new managerial value.


Private (International)


NASDAQ OMX Nordic Foundation


Department of International Economics and Management



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