Executive Replacement and Shareholder Wealth: A Review of the Theoretical Literature

Isabelle Dherment-Férère

Chapter 76 in Handbook of Top Management Teams, 2010, pp 654-662 from Palgrave Macmillan

Abstract: Abstract The number of CEO replacements at the head of corporations has risen since the early 1990s, both in France and abroad. And these replacements have sometimes sparked strong stock market reactions. Thus, on 25 January 1992 the re-nomination of James Robinson at the head of American Express caused the share price to plunge 10 per cent. The announcement of his resignation from the chairmanship and his replacement by Richard Furlaud caused the stock to recover its 10 per cent loss of the previous week.1 The extent of such a phenomenon makes one wonder about its impact on shareholder wealth.

Keywords: Human Capital; Stock Price Reaction; Golden Parachute; Executive Team; External Human Capital (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-30533-5_77

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DOI: 10.1057/9780230305335_77

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