Stock price reaction and CEO turnover: the experience of Taiwanese listed electronic companies

This paper examines whether there exists information effect of CEO turnover in the Taiwanese listed electronic industry around the announcement date in TSE. Empirical results found that following the assume office of specialized and self-motivation general manager, obvious positive abnormal stock returns are expected by the investors. But chairman turnover implied the corporate power structure of board of directors have became unbalance, hence negative abnormal stock returns are expected by the investors.