Ceo Turnover: the Impact of the Ceo’s Internal and External Appointment on Company Success

Abstract

This study examines the performances of insider and outsider CEOs (Chief Executive Officer) based on the top 100 companies in 2021 issue of the Brand Finance Turkey report. Each company has executive managers who plan and manage strategies to advance within the scope of the relevant mission and vision. The influence of managers, known as CEO or General Manager, is of great importance to the company. The article examined CEOs, financial statements and share values of the top companies traded in Istanbul Stock Exchange between the years 2010-2019. Assuming that all other conditions are equal, the impact of relevant CEOs appointed from inside or outside the firm, on the company's success had been studied. ROA (Return on Assets), ROE (Return on Equity) calculations and the change in the Borsa Istanbul share prices of each company in terms of each CEO change for the related years have been analyzed. In addition, the number of CEOs along with their tenure were also calculated. t-Test was used on the data. In conclusion CEO’s internal and external appointment had little to no impact on the company's success and share value.