Abstract
The aim of this study was to analyze the data from the Nasdaq Baltic listed companies’ financial statements and to estimate if the CEO changes have a significant influence on the financial performance: profitability, indebtedness and stock price. Data was collected and financial ratios were computed for 34 companies during 2006 to 2021 (2008 to 2022 for stock prices). The companies were divided into 3 groups: ones that had no CEO changes over the period; those that had 1 or 2 and those with 3 or more. Point-wise ANOVA, fANOVA and fMANOVA were conducted. Both point-wise and functional ANOVA indicated that there is a significant difference of at least one group from the others in terms of ROA and EBITDA margin. After conducting two-sample tests, the group with 3 or more CEO changes was identified as having a significantly higher EBITDA margin than the others. Furthermore, a significant positive relationship between the stock price and the CEO turnover was uncovered in the function-on-scalar regression results.
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