Abstract
This paper investigates the share price response to announcements of key executive dismissals by companies listed on the JSE Securities Exchange over the 25-year period 1975-1999. Announcements containing information about permanent replacements are associated with upward share price reactions. The evidence appears to be consistent with a market that is already aware of poor performance associated with management and regard the dismissal as good news and a sign that the problem may be remedied. It appears that shareholders are likely to perceive outsider appointments as immediately beneficial, but take a wait-and-see attitude towards insider appointments.
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