Investor Attention or Remaining in Office? CEOS Can't Always Get What They Want

In this study we explore the influence of investor attention on trading volumes around CEO appointment announcements. Using hand collected data on CEO turnovers in listed companies in the Polish capital market over the period 2000–2015, we demonstrate the differences in investor trading behaviour around CEO appointment announcements. Our findings confirm results of previous studies showing that investors generally neglect the appointment of the current CEO for the next term of office. We contribute to existing literature by identifying the important moderating effect of investor trading strategy, and by providing evidence that price movements and shocks before the CEO reappointment influence trading volumes. Finally, a CEO remaining in office after the long-term rise in stock price ends, is a sufficient cause to create trading pressure in investors