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Appendices
Appendix A
Appendix A
Details of studies who performed research on management changes
Authors (year) Research period Research country Main results Pre-event company performance
Dedman and Lin (2001) 1990 - 1995 United Kingdom Declining ROA for the three years before the CEO departure Kang and Shivdasani (1996) 1985 - 1990 Japan Negative abnormal return during period [-220 to -20]
Denis and Denis (1995) 1985 - 1988 United States Negative abnormal return of -11,40 % during period [-251,-2]
Denis and Denis (1995) 1985 - 1988 United States Declining ROA for the three years before the CEO departure Weisbach (1988) 1977 - 1980 United States Poor stock performance during period before management change Warner et al. (1988) 1963 - 1978 United States Negative abnormal return of -5,01 % during period [-12, -7 months]
Resignations whole sample
Dedman and Lin (2001) 1990 - 1995 United Kingdom Significant abnormal return of - 0,72 % on announcement day Kang and Shivdasani (1996) 1985 - 1990 Japan Significant abnormal return of 0,52 % during period [-1 to 0]
Denis and Denis (1995) 1985 - 1988 United States No significant market reaction Mahajan and Lummer (1993) 1972 - 1983 United States No significant market reaction
Bonnier and Bruner (1989) 1969 - 1983 United States Significant abnormal return of 2,48 % during period [-1 to 0]
Weisbach (1988) 1977 - 1980 United States Significant abnormal return of 0,35 % during period [-1 to 1]
Warner et al. (1988) 1963 - 1978 United States No significant market reaction
Furtado and Rozeff (1987) 1975 - 1982 United States Significant abnormal return of 0,95 % during period [-1 to 0]
Forced resignations
Cools and Van Praag (2003) 1991 - 2000 The Netherlands No significant market reaction
Dedman and Lin (2001) 1990 - 1995 United Kingdom Significant abnormal return of -3,98 % on announcement day Ferere and Renneboog (2000) 1988 - 1992 France Significant abnormal return of 0,5 % during period [-10,10]
Kang and Shivdasani (1996) 1985 - 1990 Japan Significant abnormal return of 1,02 % during period [-1 to 0]
Denis and Denis (1995) 1985 - 1988 United States Significant abnormal return of 1,50 % during period [-1,0]
Mahajan and Lummer (1993) 1972 - 1983 United States Significant abnormal return of -0,73 % during period [-1,0]
Warner et al. (1988) 1963 - 1978 United States No significant market reaction
35
Voluntary resignations
Dedman and Lin (2001) 1990 - 1995 United Kingdom No significant market reaction Ferere and Renneboog (2000) 1988 - 1992 France No significant market reaction
Kang and Shivdasani (1996) 1985 - 1990 Japan Significant abnormal return of 0,40 % during period [-1 to 0]
Mahajan and Lummer (1993) 1972 - 1983 United States No significant market reaction
Age related retirement
Dedman and Lin (2001) 1990 - 1995 United Kingdom No significant market reaction
Ferere and Renneboog (2000) 1988 - 1992 France Significant abnormal return of -0,20 % during period [-5 to 5]
Denis and Denis (1995) 1985 - 1988 United States Significant abnormal return of 0,20 % during period [-1,0]
Mahajan and Lummer (1993) 1972 - 1983 United States No significant market reaction
Internal successor
Ferere and Renneboog (2000) 1988 - 1992 France Significant abnormal return of -1,00 % on announcement day Kang and Shivdasani (1996) 1985 - 1990 Japan Significant abnormal return of 0,38 % during period [-1 to 0]
Furtado and Rozeff (1987) 1975 - 1982 United States Significant abnormal return of 1,05 % during period [-1 to 0]
Reinganum (1985) 1978 - 1979 United States Significant abnormal return of -0,29 % on announcement day
External successor
Ferere and Renneboog (2000) 1988 - 1992 France Significant abnormal return of 2,86 % on announcement day Kang and Shivdasani (1996) 1985 - 1990 Japan Significant abnormal return of 0,95 % during period [-1 to 0]
Furtado and Rozeff (1987) 1975 - 1982 United States Significant abnormal return of 0,72 % during period [-1 to 0]
Reinganum (1985) 1978 - 1979 United States Significant abnormal return of 1,46 % on announcement day
36
Appendix B
Appendix B
Companies included in the study
ABN AMRO Holding Getronics Rood Testhouse Accell Group Grontmij Royal Dutch Shell
AEGON Hagemeyer RT Company
Ahold Kon Heijmans Samas
Akzo Nobel Heineken SBM Offshore
Antonov ICT Automatisering Simac Techniek
Arcadis Imtech Smit International
ASM International ING Groep Sopheon ASML Holding InnoConcepts Stork
Ballast Nedam Kas Bank Telegraaf Media Groep BAM Group Kon Kendrion Tie Holding
BE Semiconductor KPN Kon TNT
BinckBank Laurus Tulip Computers
Boskalis Westminster MacIntosh Retail Unilever Brunel International Neways Electronics Unit 4 Agresso
Crucell Numico Univar
CSM Nutreco Holding Moolen Van der
Ctac Oce VastNed OFF/IND
DPA Flex Group OPG Groep Vedior
Draka Holding Ordina Vopak Kon
DSM Kon Pharming Group Wegener Kon
Econosto Kon Philips Kon Wereldhave
Eriks Group Qurius Wessanen Kon
Exact Holding Randstad Wolters Kluwer Fornix BioSciences Reed Elsevier
Fortis Rodamco Europe
37
Appendix C
Appendix C
Companies excluded from the study Merger No share data available Air France - KLM SNS Reaal
Arcelor Mittal Tele Atlas
Corio Wavin
LBI International
LogicaCMG Board structure unclear
USG People Buhrmann
Corus
No management changes VastNed Retail Aalberts Industries
Eurocommercial Prop Annual reports not available
Homburg ENDEMOL
Hunter Douglas Eurocastle Investments Nieuwe Steen Inv Kardan
Oranjewoud Beheer Prologis Euro Prop
Ten Cate
TOMTOM
38
Appendix D
Appendix D
Descriptive analysis abnormal returns excluding outliners [d = 0]
Sample Mean Median Maximum Minimum Skewness Kurtosis Jarque Bera Probability
Whole sample (ols) 124 -0,19% -0,06% 9,06% -7,57% 0,00 3,81 3,36 0,1861
Whole sample (market) 124 -0,20% -0,03% 9,70% -8,79% -0,05 4,16 7,03 0,0298
Forced resignations (ols) 60 0,59% 0,53% 9,06% -6,83% -0,17 4,17 3,72 0,1558
Forced resignations (market) 60 0,53% 0,37% 8,70% -8,79% -0,15 4,57 6,35 0,0419
Voluntary resignations (ols) 34 -1,40% -0,85% 3,37% -7,57% -0,51 2,67 1,66 0,4367
Voluntary resignations (market) 34 -1,20% -0,37% 3,21% -7,38% -0,67 2,53 2,86 0,2388
Age related retirements (ols) 14 -0,08% -0,42% 4,55% -3,92% 0,60 3,17 0,86 0,6508
Age related retirements (market) 14 -0,39% -0,74% 3,42% -3,95% 0,36 3,92 0,81 0,6682
Internal successor (ols) 29 -0,28% -0,08% 9,06% -7,57% 0,26 3,62 0,80 0,6703
Internal successor (market) 29 -0,40% -0,38% 8,70% -7,38% 0,17 3,62 0,60 0,7414
External successor (ols) 17 0,02% -0,37% 5,34% -6,70% -0,40 3,34 0,54 0,7628
External successor (market) 17 -0,37% -0,59% 4,27% -8,79% -1,08 4,77 5,53 0,0629
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Appendix E
Appendix E
Results including the outliners Whole sample ( n = 130)
OLS model Market model CAAR (%) t-value CAAR (%) t-value [ d = 0] 0,96%*** 3,07 0,95%*** 3,01
[d = 0, d = 1] 0,41% 0,65 0,29% 0,46
[ d = -1, d = 0] 0,97% 1,54 0,97% 1,54
[d = -1, d = 1] 0,41% 0,44 0,31% 0,33
Forced resignations ( n = 66)
OLS model Market model CAAR (%) t-value CAAR (%) t-value [ d = 0] 2,8%*** 5,78 2,72%*** 5,63 [d = 0, d = 1] 2,51%*** 2,59 2,28%** 2,36 [ d = -1, d = 0] 2,91%*** 3,01 2,8%*** 2,89 [d = -1, d = 1] 2,62%** 1,81 2,36%* 1,63
Voluntary resignations (n = 34)
OLS model Market model CAAR (%) t-value CAAR (%) t-value [ d = 0] -1,40%*** -2,77 -1,20%** -2,37 [d = 0, d = 1] -2,22%** -2,19 -2,07%** -2,04 [ d = -1, d = 0] -1,52%* -1,50 -1,20% -1,19 [d = -1, d = 1] -2,34%* -1,54 -2,07%* -1,36
40
Age related retirements ( n = 14)
OLS model Market model CAAR (%) t-value CAAR (%) t-value
[ d = 0] -0,08% -0,13 -0,39% -0,67
[d = 0, d = 1] -0,52% -0,44 -1,19% -1,02 [ d = -1, d = 0] 0,07% 0,06 -0,01% -0,01 [d = -1, d = 1] -0,37% -0,21 -0,81% -0,47
Internal successor ( n = 32)
OLS model Market model CAAR (%) t-value CAAR (%) t-value [ d = 0] 2,41%*** 4,85 2,30%*** 4,62 [d = 0, d = 1] 1,39% 1,40 1,08% 1,08 [ d = -1, d = 0] 2,53%** 2,55 2,37%** 2,38 [d = -1, d = 1] 1,51% 1,01 1,14% 0,77
External successor ( n = 20)
OLS model Market model CAAR (%) t-value CAAR (%) t-value [ d = 0] 3,22%*** 3,47 2,82%*** 3,03 [d = 0, d = 1] 2,01% 1,08 1,42% 0,76 [ d = -1, d = 0] 3,98%** 2,14 3,12% 1,68 [d = -1, d = 1] 2,77% 0,99 1,71% 0,62
*** Significant at 1 % level, ** 5 % level, * 10 % level
