Impact of Chief Executive Officer (CEO) Succession Policy on CEO Turnover Announcement in Malaysia

IF 0.7 Q4 BUSINESS, FINANCE

Asian Academy of Management Journal of Accounting and Finance Pub Date : 2020-08-14 DOI:10.21315/aamjaf2020.16.1.7

Shubasini Sivapregasam, A. Selamat, N. A. Rahim, J. Muhammad

引用次数: 0

Abstract

This paper presents a fresh perspective on chief executive officer (CEO) turnover, where the impact of CEO turnover on firm value is analysed based on whether the removal is planned or unplanned. A total of 146 announcements for ten years in Malaysia is examined using an event study method. The results indicate that, in general, CEO turnover announcements cause a significant reaction due to changes in the firmâ€™s investment decisions. Specifically, a significant positive impact exists when CEO turnover occurs as planned. In a planned turnover, the negative news of the removal of the CEO is immediately minimised with the positive news of a CEO appointment, indicating the positive impact of establishing a CEO succession plan on firm value. This finding adds new knowledge to the current literature and allows policymakers to examine the establishment of a CEO succession policy.

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马来西亚首席执行官继任政策对首席执行官离职公告的影响

本文提出了一个关于首席执行官(CEO)更替的新视角，其中CEO更替对公司价值的影响是基于撤换是计划的还是计划外的。本文采用事件研究方法，对马来西亚十年来的146份公告进行了研究。研究结果表明，总体而言，CEO离职公告会引起公司投资决策变化的显著反应。具体而言，当CEO离职按计划发生时，存在显著的正向影响。在有计划的更替中，CEO离职的负面消息立即被任命CEO的正面消息所最小化，这表明建立CEO继任计划对公司价值的积极影响。这一发现为现有文献增加了新的知识，并使政策制定者能够审视CEO继任政策的建立。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asian Academy of Management Journal of Accounting and Finance BUSINESS, FINANCE-

CiteScore

1.50

自引率

0.00%

发文量

审稿时长

20 weeks

期刊介绍： To provide a forum for the exchange of ideas and dissemination of empirical findings and analytical research in the specialized areas of accounting and finance with special emphasis on scholarly works with policy implications for countries in the Asia Pacific. The following are some of the topical subject areas relevant to the journal (but are not limited to): Accounting • Financial reporting and accounting standards • Auditing issues • Value based accounting and its relevance • Theory of accounting firm • Environmental auditing • Corporate governance issues • Public sector accounting Finance • Valuation of financial assets • International capital flows • Ownership and agency theory • Stock market behavior • Investment and portfolio management • Islamic banking and finance • Microstructures of financial markets