Kesan Pertukaran Pengurusan Tertinggi ke atas Harga Saham Syarikat Berkaitan dan Bukan Berkaitan Kerajaan

Hassan, Mohamat Sabri; Jaffar, Romlah; Rosly, Anwary Syuhaily

doi:10.17576/pengurusan-2016-47-03

Cited by 2 publications

(4 citation statements)

References 28 publications

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“…In Malaysia, there are limited studies on CEO transition and largely only focuses on CEO turnover. According to a recent study by Hassan et al (2016) on 135 announcements over the period of 2002 to 2008, CEO turnover has a positive impact on the stock market; before (2.10%), during (2.41%) and after (3.11%) the announcements of CEO turnover. However, this finding is inconsistent with the prior finding of Ishak and Latif (2012) on 247 announcements over the period of 2008 to 2010.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Most studies are largely one-dimensional with samples from the developed counties. In Malaysia, Ahmad et al (2016), Hassan et al (2016) and Ishak and Latif (2012) have examined CEO turnover announcement and its impact on the stock market, whereas Amran and Ahmad (2010) study focuses on the appointment of CEO in family-owned business. Apart from that, other researchers such as Badru et al (2017) and Amran et al (2014) has extended the research by investigating the impact of CEO characteristic on firm performances.…”

Section: Introductionmentioning

confidence: 99%

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Value of CEO Succession Policy on CEO Transition

Sivapregasam

Selamat

Rahim

et al. 2019

AJAG

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Chief Executive Officer (CEO) transition is a continuous process of change in leadership involving removal of existing CEO and replacement of new CEO. Ideally, CEO transition occurs based upon the CEO Succession Policy developed by the Board of Directors. The CEO succession plan and policy is important because it reduces the impact of a CEO's sudden removal on the firm. In recent time, there is an immense increase in CEO transition recorded among emerging economy, nonetheless, the issue has not been well addressed in the literature. Disclosure policy in Malaysia also views change of CEO as an important element that will have an impact on the firm value. To evaluate the CEO succession policy, this study investigates the effect of CEO transition announcement on the share price. This study adopts the event study method and employs two estimation models for expected return, which are Market Model (MM) and Capital Asset Pricing Model (CAPM). This study examines the simultaneous announcement, which indicates the adoption of succession policy, as well as the announcement of CEO appointment and CEO turnover. A total of 354 announcements of CEO transition from 170 firms listed on Bursa Malaysia, over the duration of ten years from 2007-2016 is observed. The result indicates that the firm's share price generally reacts towards all types of CEO transition announcement, with a stronger reaction significantly observed through the simultaneous announcement. Further robustness check with regression analysis confirms that when the CEO transition announcement is simultaneous, it creates more value to the firm. In other words, the CEO succession policy, where proper CEO transition takes place, eliminates the uncertainty and risk, hence, giving a positive impact on firm value. This finding also contributes to the signalling theory literature, where anticipated event induces a positive reaction from investors, as reflected in the firm share price.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Value of CEO Succession Policy on CEO Transition

Sivapregasam

Selamat

Rahim

et al. 2019

AJAG

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“…According to Barth et al (2001), the Ohlson (1995) model (also known as the price model) assumes that a company value is equal to the book value and a linear function of current abnormal earnings and other information. The model identifies how well the book value of equity, abnormal earnings and other information are reflected in the share price of companies (Hassan et al 2016;Gamerschlag 2013). The return model examines changes in share prices.…”

Section: Valuation Model and Measurement Of Variablesmentioning

confidence: 99%

“…Furthermore, Malaysia, a country with a small open economy, is vulnerable to inconsistent market sentiments (Duasa & Kassim 2009); investors are irrational because they may be acting on rumours or based on the behaviour of other investors, and this is known as herding behaviour (Brahmana et al 2012;Kaminsky & Schmulker 1999). Such a behaviour might be due to the fact that information is not publicly available or investors do not have access to confidential information (Hassan et al 2016). Such information includes HC-related information, which is generally disclosed in a limited manner (Motokawa 2015).…”

Section: Introductionmentioning

confidence: 99%

Non-Financial Human Capital Disclosure and Share Price

Hassan

Mustafa²,

Rahman

2019

AJAG

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The aim of this study is to examine the relationship between disclosure of non-financial human capital information (HCD) and share price of the top 100 companies listed on Bursa Malaysia from financial years 2010 to 2013. Human capital (HC) is considered a valuable asset in a knowledge-based economy. The knowledge and skills possessed by individuals are regarded as a key source of competitive advantage and value creator to companies. Prior research acknowledges the importance of HC information to investors, who may have to rely on disclosures in annual reports when evaluating a company's future direction, potential, value and prospects. However, companies only disclose limited information on this 'asset'. In this study, HCD is viewed from the perspective of signalling and efficient capital market theories. Following previous studies, we incorporate HC information and its two components, namely, HC information related to directors and employees, into the Ohlson model. Our study reveals an increasing trend of HCD, and the disclosure is value relevant. Further analysis of the HC information component reveals that both HC information (HC related to directors and employees) are value relevant. These findings are in line with the argument that Malaysian financial analysts and fund managers regard information related to the company's management and key corporate decision makers as important in investment decision making. The findings of this study are relevant to accounting standard setters in determining the types of HC that should be disclosed in the annual reports because this information can create value for companies. Managers should also pay attention to HC information because such information is value relevant to stakeholders.

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Kesan Pertukaran Pengurusan Tertinggi ke atas Harga Saham Syarikat Berkaitan dan Bukan Berkaitan Kerajaan

Abstract: ABSTRAK Kajian ini dijalankan untuk melihat kesan pertukaran pengurusan tertinggi (PT) di Syarikat Berkaitan (SBK) dan Bukan

Cited by 2 publications

References 28 publications

Value of CEO Succession Policy on CEO Transition

Value of CEO Succession Policy on CEO Transition

Non-Financial Human Capital Disclosure and Share Price

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