| dc.description.abstract | Several papers have evaluated the relationship between firm performance and CEO
turnover. There is robust evidence that the separation between forced and voluntary
resignations affects performance changes in the US. However, research on
Norwegian companies is still an untouched territory, as far as we know. This paper
seeks to analyze whether firm performance increases following a CEO turnover,
taking into account forced and voluntary resignations. We have used two methods
to gain knowledge on the topic. An event study uses daily stock returns, while
profitability is evaluated through quarterly reported operating income. The results
in this paper suggest that the announcement of a CEO turnover creates negative
abnormal returns in the short run, for both forced and voluntary resignations. Forced
turnovers experience an immediate improvement in operating performance after the
turnover. Profitability seems to slightly improve in the long run, even though the
estimates can be argued to be relatively small for both turnover characteristics
evaluated. | en_US |
