Good News, Bad News and CEO Changes and Changes in Board of Directors

Document Type : Research Paper

Authors

1 PhD student of accounting at Ferdowsi University of Mashhad

2 Ph.D. student of Allameh Tabataba'i University

Abstract

Accounting news have been studied from past until now in many articles and this issue has been considered from capital market and investors view in many researches, but effect of this news on top management changes has been studied in a few researches. Since accounting news can impact on board formation and CEO changes, it can be a tool for consistency of managers. In this research, we investigate the relationship between good or bad news and CEO changes and also changes in board of directors for a sample of 236 listed companies from 1387 to 1392. Findings show that when we use excess of ROA from rate of yearly bank deposit as good news, there is no relationship between accounting news and changes in CEO and board of directors. Additionally, we found that there is a significant positive relationship between CEO changes and changes in board of directors. We found a significant negative relationship between CEO changes and type of audit opinion too. Finally, we found that there is no relationship between changes in main stockholders and CEO changes and changes in board of directors. 

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Main Subjects


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