Barrons Best CEOs: How did their Firms Fare?

1
Diane H. Parente
Diane H. Parente
2
Greg Filbeck
Greg Filbeck
3
Xin Zhao
Xin Zhao
1 Penn State Erie, The Behrend College

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The Barron’s World’s Best CEO list has been published each year since 2005. While there are numerous studies concerning the post-announcement share price reaction to firms included on the list, this is a definitive study that looks at the issue of CEO replacement following the announcement of the CEO to the list. This study determines that firms that do not change CEOs perform better; firms with CEOs with shorter tenures have lower returns than those with CEOs with a longer tenure; the reason for the replacement matters in terms of future performance with negative reasons such as performance and mergers yielding lower returns; inside successors produce higher returns than outside successors; and CEOs who appear on the list five or more times show significantly higher results.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

Diane H. Parente. 2013. \u201cBarrons Best CEOs: How did their Firms Fare?\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 13 (GJMBR Volume 13 Issue C7): .

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GJMBR Volume 13 Issue C7
Pg. 35- 40
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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July 15, 2013

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English

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The Barron’s World’s Best CEO list has been published each year since 2005. While there are numerous studies concerning the post-announcement share price reaction to firms included on the list, this is a definitive study that looks at the issue of CEO replacement following the announcement of the CEO to the list. This study determines that firms that do not change CEOs perform better; firms with CEOs with shorter tenures have lower returns than those with CEOs with a longer tenure; the reason for the replacement matters in terms of future performance with negative reasons such as performance and mergers yielding lower returns; inside successors produce higher returns than outside successors; and CEOs who appear on the list five or more times show significantly higher results.

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Barrons Best CEOs: How did their Firms Fare?

Greg Filbeck
Greg Filbeck
Diane H. Parente
Diane H. Parente Penn State Erie, The Behrend College
Xin Zhao
Xin Zhao

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