The Chief Technology officer: The Effect on Firm Performance – How The Appointment of a Cto Affects The Financial Performance of S&p500 Firms
[pic 1]The Chief Technology Officer: the effect on firm performanceHow the appointment of a CTO affects the financial performance of S&P500 firmsAbstract[pic 2]key words: CTO appointment; financial performance; S&P500; technology; manufacturing; event study; fixed effect. Author: Emile J. Röell (461239)Programme: Finance & Investments – AdvancedThesis supervisor: prof. W. WagnerCo-reader: prof. D. BongaertsDate: 04-09-2017PrefaceThe 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.AcknowledgementsThinking 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 Contents1. Introduction 52. Literature review 92.1 The role of the CTO 92.2 The value of the CTO 113. Data and methods 153.1 Data 153.2 Methodology 173.2.1 Short-term stock price reaction 173.2.2 Long-term balance sheet effect 214. Empirical findings 244.1 Event study 244.2 Fixed effect regression analysis 264.2.1 Checking the model 264.2.2 Findings 264.3 Short-term versus long-term 31