This paper aims to examine the stock market reactions to the announcement of the change of a CEO for companies listed on the Swedish stock exchange and determine if the gender of the CEO makes the reactions any different. This study applies a quantitative study based on a positivistic paradigm with a deductive approach. An event study is used to determine if the announcement of a new CEO causes any abnormal returns on the day of the announcement and the days surrounding it. The findings of the event study shows that there is a significant positive reaction the day of the announcement of the new CEO. Further, when a comparison is made between a new male CEO and a new female CEO, the result shows that the market reacts more positive to a new male CEO than to his female counterpart. The results fill the research gap of the reactions of a CEO change on the Swedish Stockholm Stock Exchange and how the gender of the CEO affects the reactions. The study applies a strategy which investors can practically act on if a change of CEO can lead to abnormal returns or not. The results also contribute knowledge that complements the applicability of older and newer financial theories to reactions on the Stockholm Stock Exchange in the event of a change of CEO. To further build upon this paper, researchers can examine other stock markets to present differences and similarities to the Stockholm Stock Exchange. Another time intervals outside 2010-01-01 to 2022-03-25 can also be interesting to investigate. Another sample can also be applied to the Swedish Stockholm Stock Exchange, where market volume, companies’ sizes or industries can extract new results from the study. Research on the impact of gender on a change of CEO can also be applied to other stock markets.This paper aims to examine the stock market reactions to the announcement of the change of a CEO for companies listed on the Swedish stock exchange and determine if the gender of the CEO makes the reactions any different. This study applies a quantitative study based on a positivistic paradigm with a deductive approach. An event study is used to determine if the announcement of a new CEO causes any abnormal returns on the day of the announcement and the days surrounding it. The findings of the event study shows that there is a significant positive reaction the day of the announcement of the new CEO. Further, when a comparison is made between a new male CEO and a new female CEO, the result shows that the market reacts more positive to a new male CEO than to his female counterpart. The results fill the research gap of the reactions of a CEO change on the Swedish Stockholm Stock Exchange and how the gender of the CEO affects the reactions. The study applies a strategy which investors can practically act on if a change of CEO can lead to abnormal returns or not. The results also contribute knowledge that complements the applicability of older and newer financial theories to reactions on the Stockholm Stock Exchange in the event of a change of CEO. To further build upon this paper, researchers can examine other stock markets to present differences and similarities to the Stockholm Stock Exchange. Another time intervals outside 2010-01-01 to 2022-03-25 can also be interesting to investigate. Another sample can also be applied to the Swedish Stockholm Stock Exchange, where market volume, companies’ sizes or industries can extract new results from the study. Research on the impact of gender on a change of CEO can also be applied to other stock markets.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:umu-197136 |
| Date | January 2022 |
| Creators | Karlsson, Filip, Sundström Utbys, Sebastian |
| Publisher | Umeå universitet, Företagsekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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