Journal of International Business and Economics

The Impact on Firm Value from the Announcement of the Appointment of a Chief People Officer
Abraham H. Carr, John R. Wingender, Jr

Abstract
Over the last two decades, many companies have increasingly emphasized their firm choices on management structures and task allocations across their C-suites in response to rapid changes in demands from customers, employees, and markets (Guadalupe, Li, and Wulf, 2014). Firms can deliver strong signals to both internal and external stakeholders regarding firm priorities through the creation of additional C-suite executive positions (Hopkins, 2018). As more firms create new C-suite positions to adopt new corporate strategies and to improve managerial effectiveness and efficiency, researchers are investigating whether the announcement of new C-suite positions has a significant impact on firm value through event study methods. The Chief People Officer (CPO) has recently been added to the C-Suite to bring strategic focus on hiring, training, professional development, and performance management (Charan, Barton, and Carey, 2015). This study finds that firm announcements of new CPO positions for a sample of firms between 2000 and 2020 result in significantly positive market reactions.

Full Text: PDF     DOI: 10.15640/jibe.v12a1