Kesan Pertukaran Pengurusan Tertinggi ke atas Harga Saham Syarikat Berkaitan dan Bukan Berkaitan Kerajaan
The Effects of Top Management Turnover on Share Price of Government and Non-Government Linked Companies

Pusat Pengajian Perakaunan
Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.

msabri@ukm.edu.my

Pusat Pengajian Perakaunan
Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.

romlah@ukm.edu.my

Kolej Universiti Poly-Tech MARA
Jalan 6/91, Taman Shamelin Perkasa
56100, Wilayah Persekutuan, Kuala Lumpur, MALAYSIA.

anwarysr@gapps.kptm.edu.my

Abstract

This study was conducted to examine the effects of top management (TM) turnover in the Government (GLC) and the Non-Government-Linked Companies (NGLC) on share prices. Any turnover occurs in this positions will have an impact on the direction of the company because the successor mostly will change the company’s strategy. This and the origin of successor might affect share prices. As compared to NGLC, GLC in Malaysia is controlled directly or indirectly by the Malaysian Government which has capability to appoint board of directors and TM as well to make decision on behalf of GLC. Therefore, the effects of TM turnover on share prices may differ between these companies. Based on the Semi Strong Efficient Market Hypothesis and an event study, secondary data, which consist of share price and top management turnover, were collected. The study revealed that the capital market would react positively before, during and after the announcements of TM turnover. However, the comparison between companies showed that the GLC’s share prices would react positively only prior to the announcement as compared to a positive reaction through out the three periods for NGLC. These findings show that the GLC investor had received the information ahead the announcement and react towards the share prices. Therefore on the announcement date, the information has not contained any surprise. This study also found, the origin of the succesoris positively related to share prices. However, capital market is indifferent on the origin of the successor of GLC and NGLC. Findings from the study contribute to the literature on market reaction towards the top management turnover, especially in the GLC, which control the Malaysian capital market.

Keywords

government linked companies; share price; successor origin; Top management turnover
http://dx.doi.org/10.17576/pengurusan-2016-47-03

Citation

Hassan, M. S., Jaffar, R., & Rosly, A. S (2016). Kesan Pertukaran Pengurusan Tertinggi ke atas Harga Saham Syarikat Berkaitan dan Bukan Berkaitan Kerajaan. Jurnal Pengurusan, 47, 29–41. http://dx.doi.org/10.17576/pengurusan-2016-47-03

@article{hassan2016kesan,
  title={Kesan Pertukaran Pengurusan Tertinggi ke atas Harga Saham Syarikat Berkaitan dan Bukan Berkaitan Kerajaan},
  author={Hassan, Mohamat Sabri and Jaffar, Romlah and Rosly, Anwary Syuhaily},
  journal={Jurnal Pengurusan},
 

volume={47},
  number={},
  pages={29—41},
  year={2016},
  doi={http://dx.doi.org/10.17576/pengurusan-2016-47-03},
  publisher={Penerbit UKM},
}

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47 (2016) 29 – 41

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