Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 312

Full Length Research Paper

Market reaction to chief executive officers (CEOs) appointments on Johannesburg securities exchange (JSE): stock price and volume approach

Nthoesane M.G.*
  • Nthoesane M.G.*
  • Centre for Business Management, University of South Africa.
  • Google Scholar
Kruger J.W.
  • Kruger J.W.
  • Graduate School of Business Leadership, University of South Africa.
  • Google Scholar

  •  Received: 15 January 2014
  •  Accepted: 09 April 2014
  •  Published: 31 May 2014


The study is aimed at assessing the market reaction to the announcement of the appointment of CEOs of companies listed on the Johannesburg securities exchange (JSE). To achieve this objective an event study was conducted.  The dataset consist of 43 firms who satisfied the inclusion criteria, who have announced the appointment of CEO within the period January, 2000 to December, 2012. In this study both the volume traded and the share price were analysed in the 72-month event window. The results show that share price cumulative returns are negative at 1% significance level.  In contrast, while observing the volume traded approach the cumulative returns are significantly showing positive returns.  This study like the previous ones indicates the conflicting findings on the subject of CEO appointments subject.
Key words: CEOs appointment, event studies, market reaction, stock prices, trading volume.