Share price reactions to CEO resignations in Finnish stock markets

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School of Business | Bachelor's thesis
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Authors

Date

2019

Department

Rahoituksen laitos

Major/Subject

Mcode

Degree programme

Rahoitus

Language

fi

Pages

2+18

Series

Abstract

In this paper, I examine how Finnish stock markets react to CEO departures. The sample of this study consists of 130 CEO resignation announcements from 1.1.2010 to 1.1.2019. Throughout the period, there have been 130 CEO resignations in 92 different companies. I found out that abnormal returns surrounding the departures depend strongly on whether the resignation announcement includes the nomination of a successor. In addition, this study suggests that forced resignations lead to positive abnormal returns. The results mentioned above are statistically significant.

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Thesis advisor

Kokkonen, Joni

Keywords

Resignation, Stock, Share price, Event study

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Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-2020120656093

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[kand] Kauppakorkeakoulu / BIZ