IDEAS home Printed from https://ideas.repec.org/h/pal/pmschp/978-3-031-96066-6_5.html
   My bibliography  Save this book chapter

Are Investors More Reactive to Simultaneous Changes in Chief Executive Officer and Chair Positions?

In: Trends, Issues, and Challenges in Banking and Finance

Author

Listed:
  • Myriam García-Olalla

    (Universidad de Cantabria)

  • Eleuterio Vallelado

    (Universidad de Valladolid)

  • Jonathan Williams

    (Surrey Business School, University of Surrey)

Abstract

We estimate cumulative average abnormal returns for 2644 announcements of turnover in the chief executive officer (CEO) and Chair positions at 915 nonfinancial European companies between 2002 and 2021. Specifically, we determine investors’ reaction to news of simultaneous turnover in the two positions. Our results show, on average, that investors perceive turnover as a vehicle to enhance firm performance. Markets react negatively to the simultaneous exit of CEO and Chair and positively albeit insignificantly to simultaneous entry. There is mixed, insignificant reaction to cases of CEO exit and a new Chair. Markets respond unfavorably to simultaneous turnover in the CEO position but react positively to news of an incoming CEO and negatively to news of a CEO firing or exit. Our evidence shows that markets respond vigorously to news of changes in CEO than to changes in the Chair which are smaller and mostly insignificant.

Suggested Citation

  • Myriam García-Olalla & Eleuterio Vallelado & Jonathan Williams, 2025. "Are Investors More Reactive to Simultaneous Changes in Chief Executive Officer and Chair Positions?," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Enzo Scannella & Jonathan Williams (ed.), Trends, Issues, and Challenges in Banking and Finance, chapter 5, pages 101-126, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-3-031-96066-6_5
    DOI: 10.1007/978-3-031-96066-6_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:pmschp:978-3-031-96066-6_5. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.