Event#126tier 1live in productionNew

item 502 executive departure

cadence: Dailydata: mediumshort only
paper
2015
Source
Fee, C. E., Hadlock, C. J., Pierce, J. R. (2015). "Forced CEO Turnover, New CEO Contracts, and CEO Pay Concessions." Journal of Financial Economics, 117(3), 654-672. Also Eisfeldt-Kuhnen 2013 "CEO Turnover in a Competitive Assignment Framework."
Read the paper →

What it checks

When a public company files an 8-K saying an executive is leaving, the stock typically drops 3% within 60 days.

Mechanism

8-K Item 5.02 (Departure/Appointment of Officers). Fee et al find ~-3% abnormal return on the 8-K filing window, holding through 60d. Forced departures stronger (-5% to -15%).

No production champion data for this family yet. Stats appear once the discovery pipeline promotes at least one strategy with this family tag.

Signal rule

short on Item 5.02 filing date; hold 20/60/90 days

Data dependencies

  • sec_8k_events

    Item-coded 8-K events (1.01 material agreements, 4.02 non-reliance, etc.).

  • daily_prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

Expected edge

Paper alpha
~-3% CAR over 60d
Paper window
T+0 to T+60d

Fee-Hadlock-Pierce 2015: ~-3% CAR baseline, -5% to -15% on forced subset over 30-60d.

Example tickers where this is likely to fire

Illustrative only — the signal fires based on the live data, not a fixed list.

Related families

Explore item 502 executive departure on alphactor.ai

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For informational and educational purposes only. Not financial advice. Learn more