The impact of board changes on shareholder wealth: some UK evidence

Fox, A. F. and Opong, K. K. (1999) The impact of board changes on shareholder wealth: some UK evidence. Corporate Governance: An International Review, 7(4), pp. 385-396. (doi:10.1111/1467-8683.00169)

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Abstract

This paper examines the impact of the entry and exit of board of directors on the share price of United Kingdom listed firms. Unlike previous studies in the area, this study distinguishes between the different type of board changes. The results of the study suggest that changes in the composition of management boards affect shareholders wealth. Small but significant positive abnormal returns are experienced on the day of the announcement. The results also indicate that the informational effects of new appointments are perceived differently by the market from resignations from the management board.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Opong, Professor Kwaku
Authors: Fox, A. F., and Opong, K. K.
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
Journal Name:Corporate Governance: An International Review
Publisher:Blackwell
ISSN:0964-8410
ISSN (Online):1467-8683

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