Download or read book The Impact of CEO Turnover on the Share Price Performance of South African Listed Companies written by Coral Van Zyl and published by . This book was released on 2007 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book CEO Turnover of Technology Listed Companies and Share Price Performance written by Matthew McKenzie Snowball and published by . This book was released on 2018 with total page 119 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Financial Performance of Listed Companies written by Magesh Pillay and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: It is widely held that CEOs are central to the successful financial performance of companies. Yet, little attention has been given to the correlation between CEO tenure and financial performance of companies specifically. The purpose of this study was to determine whether CEO tenure has an impact on financial performance of companies in South Africa. The financial performance variables for the study were ROA and ROE. The performance of 30 JSE listed companies from three industries, namely, mining, retail and real estate, between 1995 to 2007 was examined. This gave a total of 62 data observations across the selected three tenure categories: short tenure (one to three years): medium tenure (four to five years): and long tenure (six or more years). The results showed that the average tenure for South African CEOs was four years: this was slightly lower than the findings of previous studies conducted in the USA. Medium and long tenure showed better financial performance for ROA than short tenure, while there was no statistically significant finding for ROE. Therefore from an ROA point of view, as tenure increases so does financial performance, until a certain point at which it is anticipated that lengthy tenure will lead to a decline in financial performance. Copyright.

Download or read book The Impact of Forced CEO Turnover Announcements on Shareholder Value written by Roman Stebler and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the impact of forced CEO turnover announcements on shareholder value as measured by stock-price-based and accounting-based performance measures. Using a unique sample of 311 CEO turnover events at firms listed on the SP500 Index between 2000 and 2010, the study investigates the actual empirical relation between firing decisions of the board of directors and how capital markets perceives the quality and effectiveness of these decisions. This paper investigates the prevailing assumption that forced CEO turnovers in every sense represent positive news to shareholders and provides new evidence that shareholder critically differentiate between the dismissal of out- and underperforming top managers yet do not explicitly disesteem the dismissal of outperforming CEOs. Despite, analysis of changes in operating return on assets urge that ousting outperforming executives tends to have an adverse impact on firm value. The findings are further confirmed in a multivariate cross-sectional regression. Informative results from the regressions also indicate that shareholders seem to be more concerned with forced turnovers in times of overall economic downturn. Moreover, analysis on the causes of dismissal suggests that in a considerable number of events the board's explanation for ousting the incumbent CEO lacks credibility and that shareholders seem to assess top executives partially but not exclusively on the basis of past performance. Overall, the results contribute to the understanding of the effects of corporate governance mechanisms on shareholders based on the example of forced CEO turnovers.

Download or read book The Impact of Mergers and Acquisitions Announcements on the Share Price Performance of Acquiring Companies written by Mthabisi Ndlovu and published by . This book was released on 2017 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book CEO Turnover and Changes in Corporate Performance in South Africa written by James Wilkes and published by . This book was released on 2014 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Relationship Between South African CEO Compensation and Company Performance in the Banking Industry written by Benno Deysel and published by . This book was released on 2017 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: This exploratory study is based on a statistical data analysis to determine whether a long-term correlation is present between South African CEO compensation and company performance in the banking sector. The detailed analysis, using a seven-year time period, is performed at individual company level as well as at sector level and includes two measures of company performance, namely market performance (share price) and accounting performance (return on equity, EBITDA and HEPS). The study is based on the agency theory, which postulates that linking CEO compensation to company performance is a means of reducing agency monitoring costs. It takes into account the historical and current trends in CEO compensation, including King III and its “say-on-pay” provision. Six out of seven null hypotheses were accepted in the study, indicating a long-term correlation between CEO compensation and variables such as company performance, average employee salary, general market performance and inflation. No correlation was found with company size.

Download or read book Corporate Performance CEO Power and CEO Turnover written by Rokiah Ishak and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of CEO Turnover on Equity Volatility written by and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "A change in executive leadership is a significant event in the life of a firm. This study investigates an important consequence of a CEO turnover: a change in equity volatility. We develop three hypotheses about how changes in CEO might affect stock price volatility, and test these hypotheses using a sample of 872 CEO turnovers over the 1979-95 period. We find that volatility increases following a CEO turnover, even when the CEO leaves voluntarily and is replaced by someone from inside the firm. Forced turnovers increase volatility more than voluntary turnovers--a finding consistent with the view that forced departures imply a higher probability of large strategy changes. For voluntary departures, outside successions increase volatility more than inside successions. We attribute this volatility change to increased uncertainty over the successor CEO's skill in managing the firm's operations. We also document a greater stock price response to earnings announcements following CEO turnover, consistent with more informative signals of value driving the increased volatility. Our findings are robust to controls for firm-specific characteristics such as firm size, changes in firm operations, and changes in volatility and performance prior to the turnover"--Federal Reserve Bank of New York web site.

Download or read book The Influence of Year Period Supersector and Business Specific Effects on the Profitability of South African Publicly Listed Companies written by Matthew Edward Birtch and published by . This book was released on 2009 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of CEO Turnover on Equity Volatility written by Matthew J. Clayton and published by . This book was released on 2008 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: A change in executive leadership is a significant event in the life of a firm. Our paper investigates a potentially significant consequence of a CEO turnover: a change in equity volatility. We develop several hypotheses about how CEO changes might affect stock price volatility, and test these hypotheses using a sample of 872 CEO changes over the 1979-1995 period. We find that volatility increases following a CEO turnover, even for the most frequenttype, when a CEO leaves voluntarily and is replaced by someone from inside the firm. Ourresults indicate that forced turnovers, which are expected to result in large strategy changes, increase volatility more than voluntary turnovers. Outside successions, which are expected to result in a successor CEO with less certain skill in managing the firm's operations, increase volatility more than inside turnovers. We also document a greater stock-price response to earnings announcements around CEO turnover, consistent with more informative signals of value driving the increased volatility. Controls for firm-specific characteristics indicate that the volatility changes cannot be entirely attributed to factors such as changes in firm operations, firm size, and both volatility change and performance prior to the turnover.

Download or read book The Impact of Rights Issues Announcements on Share Price Performance in South Africa written by Paul Jonathan Mark Cotterell and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Rights issues are an area of much interest and research globally. With the last significant local study on the topic conducted in 2005, this paper updates the findings based on more recent data. This is also the first study to explore the impact that the company's financial position has on the share price reaction to the announcement. The study was conducted by analysing rights issue announcements occurring on the JSE between 1st January 2001 and 31st December 2010. 35 events were used in this study since they met the criteria for clean measurement. A standard event study methodology was used. Abnormal returns were measured through both the market model and control portfolio, with the Altman Z Score utilised as a measure of the issuers' financial position. Statistical analysis was conducted throughout to confirm significance. Average Abnormal Returns of -2.33% and -3.30% were found on the day of the announcement, depending on the model used, and Cumulative Average Abnormal Returns (CAARs) for five days post the announcement were between -5% and -6%. Of most interest, share price reactions were found to differ, with statistical significance, according to the financial position of the issuer. Companies categorised as healthy recovered from the initial decline to a CAAR of less than -1% twenty days post the announcement. In contrast companies categorised as unhealthy and in the grey zone suffered CAARs after the same period of -9.17% and -8.06% respectively. The conclusion of the study is that the well-researched share price decline on the announcement of a rights issue persists, but that this reaction is significantly worse for companies in a poor financial position, as measured by their Altman Z Score.

Download or read book Does CEO Turnover Matter in China Evidence from the Stock Market written by Pierre Pessarossi and published by . This book was released on 2014 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the consequences of CEO turnover announcements on the stock prices of firms in China, where most listed firms remain majority-owned by the state. Our proposition is that state ownership may affect stock market reaction to CEO replacement because state-owned firms often pursue multiple, potentially contradictory, objectives, i.e. economic performance and social objectives. Applying standard event study methodology to a sample of 1,094 announcements from 2002 to 2010, we find that CEO turnover typically produces a positive stock market reaction. The reaction is significantly positive, however, only for enterprises owned by the central government, and not significant for enterprises owned by local governments or privately owned enterprises. These results suggest that a CEO turnover in a central state-owned enterprise signals a renewed commitment to the economic performance objective by state officials. The small size of CEO labor market suggests that other shareholders have a relatively small pool of CEO talent to proceed to managerial improvement when a CEO turnover takes place.

Download or read book The Impact of CEO Turnover on Firm Volatility written by Matthew J. Clayton and published by . This book was released on 2004 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: A change in executive leadership is a significant event in the life of a firm. This study investigates an important consequence of a CEO turnover: a change in equity volatility. We develop three hypotheses about how changes in CEO might affect stock-price volatility, and test these hypotheses using a sample of 872 CEO turnovers over the 1979 to 1995 period. We find that volatility increases following a CEO turnover, even for the most frequent type, when a CEO leaves voluntarily and is replaced by someone from inside the firm. Forced turnovers increase volatility more than voluntary turnovers, which we argue is consistent with forced departures implying a higher probability of large strategy changes. For voluntary departures, outside successions increase volatility more than inside successions, which we attribute to increased uncertainty over the successor CEO's skill in managing the firm's operations. We also document a greater stock-price response to earnings announcements following CEO turnover, consistent with more informative signals of value driving the increased volatility. Our findings are robust to controls for firm-specific characteristics such as changes in firm operations, firm size, and both volatility change and performance prior to the turnover.

Download or read book The Impact of CEO Turnover on Equity Volatility written by Joshua V. Rosenberg and published by . This book was released on 2006 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: A change in executive leadership is a significant event in the life of a firm. This study investigates an important consequence of a CEO turnover: a change in equity volatility. We develop three hypotheses about how changes in CEO might affect stock price volatility, and test these hypotheses using a sample of 872 CEO turnovers over the 1979-1995 period. We find that volatility increases following a CEO turnover, even when the CEO leaves voluntarily and is replaced by someone from inside the firm. Forced turnovers increase volatility more than voluntary turnovers - a finding consistent with the view that forced departures imply a higher probability of large strategy changes. For voluntary departures, outside successions increase volatility more than inside successions. We attribute this volatility change to increased uncertainty over the successor CEO's skill in managing the firm's operations. We also document a greater stock price response to earnings announcements following CEO turnover, consistent with more informative signals of value driving the increased volatility. Our findings are robust to controls for firm-specific characteristics such as firm size, changes in firm operations, and changes in volatility and performance prior to the turnover.

Download or read book Examining the Impact of Strategic Outlook on Financial Performance of South African JSE Listed Firms written by Mandira Soomeer and published by . This book was released on 2015 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book CEO Pay performance Sensitivity in South African Financial Services Companies written by Paul Anthony Shaw and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Orientation: CEO remuneration has attracted attention over the past two decades, with significant renewed interest in light of the role it is said to have played in contributing to the global financial crisis. At the heart of the issue is the perceived weak relationship between corporate performance and CEO remuneration. Research purpose: The purpose of this study was to describe the relationship between corporate performance and CEO remuneration within the South African financial services industry. Motivation for the study: The motivation for the study was to develop a deeper understanding of the relationship within the South African context, as South African banks have remained stable and profitable through the financial crisis. Research design approach and method: The research was a quantitative, archival study, conducted over a six year time period. The primary statistical techniques used in the study included: bivariate regression analysis, multiple regression analysis, and analysis of variance. Main findings/results: The primary finding was that the relationship between corporate performance and CEO remuneration is favourable (moderate to strong), but has experienced a decline. This finding emphasises the impact that macroeconomic trends have on the relationship and the role of managerial power during periods of economic uncertainty. The research further describes the structural changes in CEO remuneration with a shift away from variable pay. Practical managerial implications: The results suggest that the use of discretion and the growing impact of managerial power will be key challenges that iii remuneration committees will face in maintaining a favourable relationship between the two constructs in the future. Contribution/value add: The study provides context to CEO remuneration within a South African framework. It further provides provides a key insight that the relationship between corporate performance and CEO pay is highly dependent on the macroeconomic environment, and that CEO pay in the South African financial services is experiencing structural changes.