n Investment Analysts Journal - The share price reaction to announcements of key executive dismissals by companies listed on the JSE Securities Exchange
|Article Title||The share price reaction to announcements of key executive dismissals by companies listed on the JSE Securities Exchange|
|© Publisher:||Taylor & Francis|
|Journal||Investment Analysts Journal|
|Publication Date||Jan 2003|
|Pages||29 - 40|
ISI Social Science
This paper investigates the share price response to announcements of key executive dismissals by companies listed on the JSE Securities Exchange over the 25-year period 1975-1999. Announcements containing information about permanent replacements are associated with upward share price reactions. The evidence appears to be consistent with a market that is already aware of poor performance associated with management and regard the dismissal as good news and a sign that the problem may be remedied. It appears that shareholders are likely to perceive outsider appointments as immediately beneficial, but take a wait-and-see attitude towards insider appointments.
Article metrics loading...