The Effect of Management change on stock prices

Researchers have different opinion about the effect of firms management change on stock prices fluctuation and so far the following studies couldn’t aim to the same result about this issue. So there isn’t an overall theory in this area. In most studies, market reacted negatively to the management change. In most studies, the effect of top management changing, board of directors and CEO, was reviewed. This paper had examined the effect of changes management stock price behavior on of the listed companies in Tehran Stock Exchange between 2001-2005. This study finds that stock prices react to the disclosure of top management changes.