THE EFFECT OF CEO CHANGE ON STOCK RETURN WITHIN THE PERSPECTIVE OF UPPER ECHELONS THEORY

Abstract

The Upper Echelons Theory states that the characteristics of individuals in top management have a significant impact on firm performance and strategies. In line with this, in this study, the relationship between CEO change, frequency of CEO change, CEO tenure, and stock price performance has been examined. In the research, the year of the CEO change and the stock performance in the following year were used as dependent variables. CEO change, the frequency of CEO change and the year the CEO spent in the same position were used as independent variables. In the research, the CEO position of the companies in the BIST100 index in the years 2011-2021 and the stock performance data in the years 2011-2022 were used. According to the results obtained from the research; there is no statistically significant relationship between CEO change, CEO turnover frequency and CEO tenure and stock price performance.

Keywords

• CEO Change
• Stock Return
• Borsa İstanbul

THE EFFECT OF CEO CHANGE ON STOCK RETURN WITHIN THE PERSPECTIVE OF UPPER ECHELONS THEORY

Abstract

The Upper Echelons Theory states that the characteristics of individuals in top management have a significant impact on firm performance and strategies. In line with this, in this study, the relationship between CEO change, frequency of CEO change, CEO tenure, and stock price performance has been examined. In the research, the year of the CEO change and the stock performance in the following year were used as dependent variables. CEO change, the frequency of CEO change and the year the CEO spent in the same position were used as independent variables. In the research, the CEO position of the companies in the BIST100 index in the years 2011-2021 and the stock performance data in the years 2011-2022 were used. According to the results obtained from the research; there is no statistically significant relationship between CEO change, CEO turnover frequency and CEO tenure and stock price performance.

Keywords

• CEO Değişimi
• Hisse Getirisi
• Borsa İstanbul

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