Empirical Analysis of Shareholder’s Wealth Effect from Reinstatement of Top Managers

• Main Authors: Wang, Yang-Sheng, 王陽聖
• Other Authors: Shih, Kuang-hsun
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/87718996153039127960

碩士 === 中國文化大學 === 財務金融學系 === 101 === 　　Enterprises generally often change their top members of executive board in response to the emergence of competitors and constantly changing market challenges so as to achieve or maintain their market dominance. In this study, top executives who come back their original positions (hereafter so called “return”) was divided into the Chairman return and the General Manager return. Among of them the General Manager return is further categorized into two types which are Chairman who held a concurrent position of General Manager (Chairman/ GM) and who specifically was appointed as General Manager (GM Only). The effectiveness of reinstatement of top executives to the enterprises depends on operating results, market reaction and acceptance. In the fact that the change of top executives among different levels leads to different outcomes. 　　The study period is from January 1, 2002 to December 31, 2012. The research ob-jects of this study are all industries in Taiwan which are classified by Taiwan Stock Ex-change. The samples are the events which means the reinstatement of top executives. 　　The result shows that the return of top executives creates negative impacts on cor-porate values. The change of different levels of senior managers in fact reports different results. Therefore, the decision to bring back top executives does not necessarily result in good performances. Companies are hence advised to cautiously evaluate whether they should change top executives in order to avoid negative reaction of share prices and damages to investors’ interests.