The Chief Technology officer: The Effect on Firm Performance - How The Appointment of a Cto Affects The Financial Performance of S&p500 Firms
Autor: Emile Röell • February 5, 2018 • Research Paper • 14,480 Words (58 Pages) • 789 Views
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The Chief Technology Officer: the effect on firm performance
How the appointment of a CTO affects the financial performance of S&P500 firms
Abstract[pic 2]
key words: CTO appointment; financial performance; S&P500; technology; manufacturing; event study; fixed effect.
Author: Emile J. Röell (461239)
Programme: Finance & Investments – Advanced
Thesis supervisor: prof. W. Wagner
Co-reader: prof. D. Bongaerts
Date: 04-09-2017
Preface
The copyright of the master thesis rests with the author. The author is responsible for its contents. RSM is only responsible for the educational coaching and cannot be held liable for the content.
Acknowledgements
Thinking about the endless travelling from Amsterdam to Rotterdam – the time I have spent travelling from my house to the university sums up to about one month of the past year - I can still look back with a smile on my face on what I have learned and the interesting and inspiring people that I have met. I am proud of my hard work and of the result. I would like to thank my parents for supporting me to join this new programme and for telling me that I shouldn’t worry too much, even though I almost never listened. I would also like to thank my thesis supervisor prof. Wolf Wagner for giving me the responsibility to work individually and for the firm advice on what topic not to choose, slowing down my sometimes unrealistic ambitions.
Table of Contents
1. Introduction 5
2. Literature review 9
2.1 The role of the CTO 9
2.2 The value of the CTO 11
3. Data and methods 15
3.1 Data 15
3.2 Methodology 17
3.2.1 Short-term stock price reaction 17
3.2.2 Long-term balance sheet effect 21
4. Empirical findings 24
4.1 Event study 24
4.2 Fixed effect regression analysis 26
4.2.1 Checking the model 26
4.2.2 Findings 26
4.3 Short-term versus long-term 31
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