CEOS’ influences on the stock performance on companies

• Autor(a) principal: Machado, Maria Augusta Soares
• Data de Publicação: 2021
• Outros Autores: Moraes, Ana Beatriz de Mello, Jacobsen, Alberto, Caldeira, André Machado, Santos, Bruno Roberto
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Independent Journal of Management & Production
• Texto Completo: http://www.ijmp.jor.br/index.php/ijmp/article/view/1321
• topic: stock performance; the investors’ interests; dividends adjustment

Investors are not concerned with subjective internal measures, employees’ satisfaction or internal policies regarding the CEO’s evaluation and their compensation.  For the investor, the most important aspect is the return of their investment. This paper focuses filling the gap left generically and quantitatively in evaluating the CEOSs influence on the stock performance on their companies during their management. The measurement of the CEOSs influence on the stock performance of the most important North American companies is this paper’s proposal. Assuming an efficient market and observing these companies’ stock performance during a specific period, it is possible to know with accuracy what these institutions created during the same period, as well as, expectation changes on their future profits. In this study, it was used some statistical tests described along the paper. This study demonstrated that, completely assume that the CEOSs of the main American companies were a determinant factor in the success of these corporations is a widely committed mistake.