Shareholder Wealth Effects of CEO Departures: Evidence from the UK

Dedman, Elisabeth; Lin, Steve

doi:10.2139/ssrn.265368

Cited by 35 publications

(44 citation statements)

References 26 publications

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“…The appointment of a successor tends to generate a positive price effect, as was shown by Dedman and Lin (2002). They are the only ones to provide evidence that the sub-set consisting of pure dismissal announcements only, i.e.…”

Section: Introductionmentioning

confidence: 77%

“…Furthermore, the three studies that we know of that pertain to European CEO's do not report any evidence in support of the value relevance of monitoring. Dedman and Lin (2002) document negative stock price effects resulting from the announcement that a British CEO is forced to depart. Dherment-Ferere and Renneboog (2002), who study the stock price effect of French CEO turnover, find an insignificant effect during the relevant event window.…”

Section: Review Of the Literaturementioning

confidence: 99%

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The value relevance of top executive departures: Evidence from the Netherlands

Cools

Praag

2007

Journal of Corporate Finance

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Section: Introductionmentioning

confidence: 77%

Section: Review Of the Literaturementioning

confidence: 99%

The value relevance of top executive departures: Evidence from the Netherlands

Cools

Praag

2007

Journal of Corporate Finance

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“…They supported the 'good news hypothesis', that good news firms make more disclosures than bad news firms to achieve benefits, such as a reduction in information asymmetry and a lower cost of capital. Dedman and Lin (2002) found that only half of their sample of CEO departures were announced to the regulatory news service, even though this was proved by the share price reactions to the release of this information by the financial press. Miller (2002) documented a positive association between share price/earnings performance and disclosure.…”

Section: The Impact Of Td On Fpmentioning

confidence: 99%

Tone disclosure and financial performance: evidence from Egypt

Aly

El-Halaby

Hussainey

2018

ARJ

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Purpose This paper aims to examine the extent to which financial performance (FP) represents one of the main determinants for tone disclosure (TD) in Egyptian annual reports. The authors also measure the bidirectional relationship between TD and FP. Design/methodology/approach The manual content analysis is used to measure the levels of TD in annual reports for a sample of 105 firms listed on the Egyptian stock market. The sample covers a three-year period (2011-2013). Findings The descriptive analysis in this paper shows that Egyptian firms disclose more good news than bad news. Therefore, the net news disclosure, or net variances, between good/bad is positive. The empirical analysis shows a positive association between the narrative disclosure of good/bad news and FP based on return on assets. The authors also find a highly significant association between the auditor, profitability, leverage, firm growth and financial reporting of good/bad news information. Finally, the results of the ordinary least squares regression show that the causality between the two endogenous variables runs from FP to TD. Thus, TD is determined by FP. Originality/value This study offers a novel contribution to disclosure studies by being the first study to examine TD in one of the developing countries.

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“…However, literature provides mixed findings as most studies indicated positive market reaction (Setiawan 2008;Dahya & McConnell 2005;Huson et al 2004;Kang & Shivdasani 1996;Denis & Denis 1995;Weisbach 1988), while other studies (Ishak & Abdul Latif 2012;Dedman & Lin 2002;Warner et al 1988) reported negative market reaction toward firms' share prices. These inconsistent results could be influenced by how investors' perceived the incoming CEO/MD. The appointment of new CEO may lead to a positive market reaction if the new CEO has new vision and strong aspiration to achieve better performance (Smith 2011); new leadership style (Kang & Shivdasani 1996) and implement new strategies and policies (Pessarossi & Weill 2013).…”

Section: Literature Review and Hypotheses Development The Effect Of Cmentioning

confidence: 98%

“…Studies from the capital market performance perspective investigate the effect of top management turnover on the changes of firms' share prices over a short period of time (event study approach). However, results from this approach are inconclusive (example: Dahya & McConnell 2005;Dedman & Lin 2002;Denis & Denis 1995;Setiawan, Hananto & Kee 2011), in which investors are uncertain whether the announcement indicates a good news or a bad news (Setiawan et al 2011).…”

Section: Introductionmentioning

confidence: 99%