Kesan Pertukaran Pengurusan Tertinggi ke atas Harga Saham Syarikat Berkaitan dan Bukan Berkaitan Kerajaan

Translated title of the contribution: The effects of top management turnover on share price of government and non-government linked companies

Mohamat Sabri Hassan, Romlah Jaffar, Anwary Syuhaily Rosly

Research output: Contribution to journalArticle

Abstract

This study was conducted to examine the effects of top management (TM) turnover in the Government (GLC) and the Non-Government-Linked Companies (NGLC) on share prices. Any turnover occurs in this positions will have an impact on the direction of the company because the successor mostly will change the company's strategy. This and the origin of successor might affect share prices. As compared to NGLC, GLC in Malaysia is controlled directly or indirectly by the Malaysian Government which has capability to appoint board of directors and TM as well to wake decision on behalf of GLC. Therefore, the effects of TM turnover on share prices may differ between these companies. Based on the Semi Strong Efficient Market Hypothesis and an event study, secondary data, which consist of share price and top management turnover, were collected. The study revealed that the capital market would react positively before, during and after the announcements of TM turnover. However, the comparison between companies showed that the GLC's share prices would react positively only prior to the announcement as compared to a positive reaction through out the three periods for NGLC. These findings show that the GLC investor had received the information ahead the announcement and react towards the share prices. Therefore on the announcement date, the information has not contained any surprise. This study also found, the origin of the succesor is positively related to share prices. However, capital market is indifferent on the origin of the successor of GLC and NGLC. Findings from the study contribute to the literature on market reaction towards the top management turnover, especially in the GLC, which control the Malaysian capital market.

Original languageMalay
JournalJurnal Pengurusan
Volume47
Publication statusPublished - 1 Sep 2016

Fingerprint

Top management
Management turnover
Share prices
Government
Announcement
Capital markets
Turnover
Efficient market hypothesis
Management decisions
Secondary data
Market reaction
Board of directors
Investors
Malaysia
Event study
Surprise

ASJC Scopus subject areas

  • Business and International Management
  • Accounting
  • Business, Management and Accounting (miscellaneous)

Cite this

Kesan Pertukaran Pengurusan Tertinggi ke atas Harga Saham Syarikat Berkaitan dan Bukan Berkaitan Kerajaan. / Hassan, Mohamat Sabri; Jaffar, Romlah; Rosly, Anwary Syuhaily.

In: Jurnal Pengurusan, Vol. 47, 01.09.2016.

Research output: Contribution to journalArticle

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