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How does an appointed ceo influence the stock price?: A Multiple Regression Approach
KTH, School of Engineering Sciences (SCI), Mathematics (Dept.), Mathematical Statistics.
KTH, School of Engineering Sciences (SCI), Mathematics (Dept.), Mathematical Statistics.
2017 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesisAlternative title
Hur påverkas aktiepriser av tillsättningen av en ny VD (Swedish)
Abstract [en]

When a publicly traded company changes CEOs, the stock market will react in either a positive or negative way. This thesis uses multiple regression analysis to investigate which characteristics of the personal profile of the new CEO that might evoke positive or negative reactions from the stock market, both on one-day and one-year time perspectives. The mathematical results are compared to professional opinions regarding what defines an optimal CEO. The inefficiency of the financial markets and complexity of stocks make the mathematical results mostly insignificant. The only correlations found were a positive correlation for highly paid CEOs and a negative correlation for insider recruitment. The thesis concludes that an optimal CEO is defined by its leadership abilities, not by its personal profile.

Abstract [sv]

När ett börsnoterat företag byter VD kommer aktiemarknaden att reagera på ett positivt eller negativt sätt. Denna uppsats använder multipel regressionsanalys för att undersöka vilka egenskaper hos den nya VD:n som kan framkalla positiva eller negativa reaktioner från aktiemarknaden, både på en dags och på ett års tid. De matematiska resultaten jämförs med professionella åsikter om vad som definierar en optimal VD. De ineffektiva egenskaperna hos den finansiella marknaden kombinerat med aktiers komplexitet gör de matematiska resultaten till stor del insignifikanta. De enda korrelationerna som hittades var en positive korrelation för högt betalda VD:ar och en negativ korrelation för internt rekryterade VD:ar. Uppsatsen drar slutsatsen att en optimal VD definieras av sina ledarskapsförmågor och inte av sin personliga bakgrund.

Place, publisher, year, edition, pages
2017.
Series
TRITA-MAT-K ; 2017:13
Keywords [en]
CEO, Leadership, Corporate Governance, Stock Market, Regression Analysis
Keywords [sv]
VD, Ledarskap, Bolagsstyrning, Aktiemarknaden, Regressionsanalys
National Category
Computational Mathematics
Identifiers
URN: urn:nbn:se:kth:diva-209788OAI: oai:DiVA.org:kth-209788DiVA, id: diva2:1114446
External cooperation
Transearch International Sweden AB
Subject / course
Applied Mathematics and Industrial Economics
Educational program
Master of Science in Engineering - Industrial Engineering and Management
Supervisors
Examiners
Available from: 2017-06-23 Created: 2017-06-23 Last updated: 2017-06-23Bibliographically approved

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