INVESTORS’ PERCEPTION OF THE EFFECT OF NEW BOARD-MEMBERS ON SHAREHOLDER VALUE: AN EVENT STUDY

In this paper I investigate the effect of the announcement of a change in board composition on the running stock price of a company. By running an event study using data on stock prices and the dates of corporate announcements and subsequently making use of hypothesis testing, I find no significant effects for the characteristics gender, position, sector and insider of the new board members, and find some significant effects on the company-level, namely for the sector characteristic.