The impact of appointment of outsider Chief Executive Officer (CEO) successors on the stock performance of NSE 500 companies over the period of 2009-2015 is assessed in this study. An event study methodology is used to measure the abnormal stock returns for the event window (-5, +5) days. Significant, positive succession effects are observed around the time of the announcement of new external CEO successors. The results of the study indicate that shareholders give emphasis to the new CEOs origin.
Volume 11 | 07-Special Issue
Pages: 1111-1115