CEO Succession and Shareholders Wealth in Malaysian Public Listed Companies

This study observes the impact of CEO succession on stock price of Malaysian Public Listed Companies (PLCs). Standard event study methodology is used to examine the immediate price effects of all Bursa Malaysia listed firms that announced CEO succession 2008 to 2010. The finding shows that the market is indifferent on the date of announcement. However, there are significant positive abnormal returns of 1.5% in 10 days before the announcement date using market model approach and market adjusted return model.