Document Type
Report
Key Takeaways
• Following financial wrongdoing, firms who replace CEOs with an outside successor receive a positive investor result of 3.85 percent. • Investors respond most negatively when firms hire an interim CEO or fail to name a successor following a CEO succession after material financial misstatement. • Boards must be wary of acting symbolically to remove a CEO following financial misconduct without a readymade successor to condition investor response.
Publication Date
2015
Source
Gangloff, K. A., Connelly, B. L., & Shook, C. L. (2015). Of Scapegoats and Signals: Investor Reactions to CEO Succession in the Aftermath of Wrongdoing. Journal of Management, In Press.
Disciplines
Business
Copyright
© 2015, University of South Carolina
Publication Info
Gangloff, K. A., Connelly, B. L., & Shook, C. L. (2015). Of Scapegoats and Signals: Investor Reactions to CEO Succession in the Aftermath of Wrongdoing. Journal of Management, In Press., 2015.