Publication type: Article in scientific journal
Type of review: Peer review (publication)
Title: New brooms : the stock market reaction to foreign CEO succession in Switzerland
Authors: Seelhofer, Daniel
DOI: 10.1504/EJIM.2010.034964
Published in: European Journal of International Management
Volume(Issue): 4
Issue: 5
Pages: 506
Pages to: 523
Issue Date: 2010
Publisher / Ed. Institution: Inderscience
ISSN: 1751-6765
Language: English
Subject (DDC): 332.6: Investment
Abstract: Using event study methodology, this paper examines the immediate investor reaction to foreign and domestic CEO succession announcements in internationalised firms and analyses whether the stock market reacts differently to the two. Results suggest that crossover successions (e.g. where a foreigner follows a domestic CEO) lead to a significant negative reaction during the days immediately surrounding the succession event, whereas regular, i.e. non-crossover, successions are not associated with significant abnormal returns. It is concluded that the stock market punishes socio-cultural dissimilarity between successor and predecessor because it contributes to uncertainty about the succession.
Fulltext version: Published version
License (according to publishing contract): Licence according to publishing contract
Departement: School of Management and Law
Appears in Collections:Publikationen School of Management and Law

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