Chief Executive Officer departures and market uncertainty

Australian Journal of Management

Volumn 38, Issue 2, 2013, Pages 279-310

  Cheung, W Jane ^a   Jackson, Andrew B ^b  

^a Department of the Treasury ^*  (Australia)

^b UNIVERSITY OF NEW SOUTH WALES   (Australia)

Author keywords

abnormal returns; Chief Executive Officer; G14; G34; stock return volatility

Indexed keywords

EID: 84880852266     PISSN: 03128962     EISSN: 13272020     Source Type: Journal    
DOI: 10.1177/0312896212450040     Document Type: Article

References (44)

1. Aivazian V, Lai T-k and Rahaman M (2009) Unraveling the corporate "black box": how do CEOs create value for their firms? Working Paper, University of Toronto.
2. Baiman S,Verrecchia R.Earnings and price-based compensation contracts in the presence of discretionary trading and incomplete contracting.Journal of Accounting and Economics. 1995;20:93-121.
3. Bookstaber RM,Pomerantz S.An information-based model of market volatility.Financial Analysts Journal. 1989;45:37-46.
4. Bushee BJ,Noe CF.Corporate disclosure practices, institutional investors and stock return volatility.Journal of Accounting Research. 2000;38:171-202.
5. Chordia T,Huh S-W,Subrahmanyam A.The cross-section of expected trading activity.Review of Financial Studies. 2007;20:709-740.
6. Clayton MC,Hartzell JC,Rosenberg J.The impact of CEO turnover on equity volatility.Journal of Business. 2005;78:1779-1808.
7. Cools K,Van Praag CM.The value relevance of top executive departures: evidence from the Netherlands.Journal of Corporate Finance. 2007;13:721-742.
8. Denis DJ,Denis DK.Performance changes following top management dismissals.The Journal of Finance. 1995;50:1029-1057.
9. Dherment-Ferere I,Renneboog LConvergence and Diversity of Corporate Governance Regimes and Capital Markets. McCahery JMoerland PRaaijmakers T, ed. Oxford: Oxford University Press; 2002:297-324.
10. Dikolli SS, Mayew WJ and Nanda D (2009) Performance surprises and uncertain managerial ability: evidence from CEO turnovers. Working Paper, Duke University.
11. Dissanaike G and Papazian AV (2005) Management turnover in stock market winners and losers: a clinical investigation. Working Paper, University of Cambridge.
12. Engel E,Hayes RM,Wang X.CEO turnover and properties of accounting information.Journal of Accounting & Economics. 2003;36:197-226.
13. Farrell KA,Whidbee DA.Impact of firm performance expectations on CEO turnover and replacement decisions.Journal of Accounting & Economics. 2003;36:165-196.
14. Fleming J,Kirby C,Ostdiek B.The economic value of volatility timing.The Journal of Finance. 2001;56:329-352.
15. Francis J,Schipper K,Vincent L.Earnings announcement and competing information.Journal of Accounting & Economics. 2002;33:313-342.
16. French KR,Roll R.Stock return variances: the arrival of information and the reaction of traders.Journal of Financial Economics. 1986;17:5-26.
17. Garman MB,Klass MJ.On the estimation of security price volatilities from historical data.Journal of Business. 1980;53:67-78.
18. Gregory-Smith I,Thompson S,Wright PW.Fired or retired? A competing risks analysis of chief executive turnover.The Economic Journal. 2009;119:463-481.
19. Huson MR,Malatesta PH,Parrino R.Managerial succession and firm performance.Journal of Financial Economics. 2004;74:237-275.
20. Intintoli VJ (2010) The effects of succession choice surrounding CEO turnover announcements: evidence from marathon successions. Working Paper, Southern Illinois University.
21. Jackson AB (2011) Stock return volatility surrounding management earnings forecasts. Working Paper, University of New South Wales.
22. Kim O,Verrecchia RE.Market liquidity and volume around earnings announcements.Journal of Accounting & Economics. 1994;17:41-67.
23. Kind A and Schlapfer Y (2010) Is a CEO turnover good or bad news? Working Paper, Duke University.
24. Krinsky I,Lee J.Earnings announcements and the components of the bid-ask spread.The Journal of Finance. 1996;51:1523-1535.
25. Lau J,Sinnadurai P,Wright S.Corporate governance and chief executive officer dismissal following poor performance: Australian evidence.Accounting & Finance. 2009;49:161-182.
26. Leker J,Salomo S.CEO turnover and corporate performance.Scandinavian Journal of Management. 2000;16:287-303.
27. Leuz C,Verrecchia RE.The economics consequences of increased disclosure.Journal of Accounting Research. 2000;38:91-124.
28. Lubatkin MH,Chung KH,Rogers RC, et al.Stockholder reactions to CEO changes in large corporations.The Academy of Management Journal. 1989;32:47-68.
29. McIlveen L.Oh no, they've killed Kerry.The Australian. 2000;:1.
30. Mahajan A,Lummer S.Shareholder wealth effects of management changes.Journal of Business Finance & Accounting. 1993;20:393-410.
31. Mandelbrot B.The variation of certain speculative prices.Journal of Business. 1963;36:394-419.
32. Parrino R.CEO turnover and outside succession: a cross-sectional analysis.Journal of Financial Economics. 1997;46:167-197.
33. Pastor L,Veronesi P.Stock valuation and learning about profitability.The Journal of Finance. 2003;58:1749-1789.
34. Pourciau S.Earnings management and nonroutine executive changes.Journal of Accounting & Economics. 1993;16:317-336.
35. Rogers JL,Skinner DJ,Van Buskirk A.Earnings guidance and market uncertainty.Journal of Accounting & Economics. 2009;48:90-109.
36. Ruppert DStatistics and Finance: An Introduction. New York: Springer; 2004:.
37. Suchard J-A,Singh M,Barr R.The market effects of CEO turnover in Australian firms.Pacific-Basin Finance Journal. 2001;9:1-27.
38. Venkatesh PC.The impact of dividend initiation on the information content of earnings announcements and returns volatility.The Journal of Business. 1989;62:175-197.
39. Warner JB,Watts RL,Wruck KH.Stock prices and top management changes.Journal of Financial Economics. 1988;20:461-492.
40. Weisbach MS.Outside directors and CEO turnover.Journal of Financial Economics. 1988;20:431-460.
41. Weisbach MS.CEO turnover and the firm's investment decisions.Journal of Financial Economics. 1995;37:159-188.
42. Wells P.Earnings management surrounding CEO changes.Accounting & Finance. 2002;42:169-193.
43. Worrell DL,Davidson WN,Glascock JL.Shareholder reactions to departures and appointments of key executives attributable to firings.The Academy of Management Journal. 1993;36:387-401.
44. Zhang XF.Information uncertainty and stock returns.Journal of Finance. 2006;61:105-137.