Stock market reaction to CEO appointments, does background matter? Evidence from Finland.

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School of Business | Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.

Date

2019

Major/Subject

Mcode

Degree programme

Rahoitus

Language

en

Pages

19+2

Series

Abstract

This thesis analyses the importance of CEO appointments to shareholders in the Helsinki stock market between April 2009 and October 2019, with a focus on the different background characteristics the appointed CEOs hold. To assess if the owners of Finnish listed companies have preferences when it comes to appointed CEOs, I conduct a traditional event study with categorical regressions on the different cross sections of the sample. Results confirm that CEO appointments are indeed perceived as influential and carry a significant abnormal stock price effect. Evidence also suggests that some CEO characteristics do have a directional positive abnormal effect, but results are not significant enough to draw further conclusions.

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Thesis advisor

Ungeheuer, Michael

Keywords

CEO appointments, OMXH, abnormal returns, event study

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