Shareholder Wealth Effects Associated with Firm Specific Human Capital: Evidence from Real Estate Management Turnover
Posted: 7 Apr 1997
Date Written: Undated
Abstract
Previous literature has shown that management turnover can enhance or reduce shareholder wealth. This study uses top real estate management turnover to examine how changes in firm specific human capital affect firm value. Real estate managers possess firm specific human capital through knowledge of their firms' real estate holdings. The evidence supports the notion that losses of firm specific human capital elicit a significantly negative market reaction. However, consistent with general management turnover, the market reaction for real estate firms varies according to the type of management change being examined.
JEL Classification: R52
Suggested Citation: Suggested Citation