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Mid-sized IT firms outperform after CEO change more often than large IT firms
TIWN
TIWN
PHOTO : TIWN
New Delhi, June 21 : CEO changes usually don't lead to a turnaround among large IT firms that have lagged on growth previously and IT stocks outperform over longer periods if they improve across multiple metrics, foreign brokerage Jefferies said in a report.
"Our analysis of 13 CEO changes over the past decade shows that midsized IT firms outperform on growth/profitability after a CEO change more often than large IT firms," it added.
A CEO change led to outperformance on revenue growth on seven out of 13 occasions, on revenue and profit growth on five out 13 occasions and on revenue, profit & ROA/ROE on three occasions out of 13 occasions.
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