Studying the Effect of Changing the Managing Director on the Abnormal Returns of Shares of Companies Listed on the Iraqi Stock Exchange

• Hasan, Hussein ^[1] ; Khalbas, Hudaa Nadhim ^[1] ; AL Saadi, Farqad Mohammed Bakr ^[2]
  1. [1] Dijlah University College

     Dijlah University College

     Irak

     
  2. [2] Prosthetic & Orthotic Department, college of Engineering, Karbala University, Karbala
• Localización: Estudios de economía aplicada, ISSN 1133-3197, ISSN-e 1697-5731, Vol. 39, Nº Extra 11, 2021 (Ejemplar dedicado a: Special Issue on Financial Crises and its effect on the economics of the countries)
• Idioma: inglés
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• Resumen

  • The aim of this research is to study the market reaction to the change of the managing director and how this change affects the abnormal returns of the shares. The research is based on the information published by the companies listed on the Iraq Stock Exchange, and 35 companies were selected for the period from 2015 to 2019. The results of the hypothesis test for this study show that there is a negative and significant relationship between the change of the managing director and abnormal stock returns. On the other hand, investors undervalue stock prices when changing CEOs. As a result, the stock returns are less than expected.