A note on assessing the relation between CEO characteristics and stock performance: Alpha Above Replacement
Abnormal returns, Alpha, Chief executive officer, Stock performance
Accounting and Finance
Many studies examine the relation between stock performance and CEO characteristics. We approach the topic in a different way, using the alphas generated by the Fama-French three-factor model as the dependent variable in a CEO characteristic model. We find several traits are significantly related to alpha. CEOs who are younger, own a larger fraction of firm equity and hold a graduate degree provide greater alphas. CEOs who are also the founder of the firm deliver larger alphas. Our results provide useful information for boards assessing the performance of CEOs and considering CEO succession.
Original Publication Date
DOI of published version
UNI ScholarWorks, Rod Library, University of Northern Iowa
Olsen, Brett C.; Sisodiya, Sanjay R.; and Swisher, Judith, "A note on assessing the relation between CEO characteristics and stock performance: Alpha Above Replacement" (2016). Faculty Publications. 1036.