Förändring i ledningsgruppens sammansättning och dess påverkan på kapitalmarknaden med kontextuellt handlingsutrymme i fokus

: En studie på den svenska marknaden

Abstract

Since long empirical research have explored how top management team turnover is related to firm performance and market related outcomes. Resently research started to explore the role discretionary context place in this relationship. Managerial discretion and its different ascpects has been one such contextual attribute.

Highly publicized scandals in global, European and no less in Swedish context provided a plausible empirical reason to explore the relationship between top management team turnover and stock market performance with managerial discretion. Combining theories from corporate governance and corporate finance field of studies this thesis aims to explain how top management team turnover affects stock market reactions moderated by managerial discretion. This study adopts deductive reasoning and employs quantitative analysis.

The results show that top management turnover does not influence stock market reaction and this relationship is not contingent on contextual aspect of managerial discretion. The thesis suggests number of explantion to these non-findings and some of the findings.

Some of the interesting findings of the thesis indicate that past performance has a major effect on market reaction to the top management team turnover as well as that instead of playing the moderating role managerial contextual discretion has a direct effect on that outcome.

The thesis’s theoretical contribution lays in argumentation for the relationship of the concepts under study as well as provides some empirical contributions by highlighting the development of managerial turnover and managerial discretion over a limited period of time.