Stock Prices and Resignation of Members of the Board: The Case of the Warsaw Stock Exchange
In this paper we provide an empirical analysis of announcements of resignation of board members using data which comes from the Warsaw Stock Exchange. The market reaction to this information is tested at different time horizons by means of event study methodology. The results show that market reaction is rather positive immediately before the announcement release and negative over the following six-day-period starting on the event day. A possible explanation for this phenomenon is suggested. Besides the traditional examination of abnormal return behaviour, we also check whether or not resignation announcements induce increases in the variance of stock returns over the period under consideration. It turns out that a tendency towards increased stock return volatility can be observed in the whole period prior to the announcement release.
Volume (Year): 5 (2007)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: Cankarjeva 5, SI-6104 Koper, PO BOX 345|
Phone: 05 610 20 00
Fax: 05 610 20 15
Web page: http://www.mgt.fm-kp.si
More information through EDIRC
|Order Information:|| Web: http://www.mgt.fm-kp.si Email: |
When requesting a correction, please mention this item's handle: RePEc:mgt:youmgt:v:5:y:2007:i:2:p:179-192. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alen Jezovnik)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.