Faculty News

Prof. JP Eggers on Steve Ballmer's departure from Microsoft

Excerpt from NBR -- "Certainly when investors are lacking confidence in a CEO and that CEO leaves, there's going to be a bump in the stock price. When we think about what some of the major reasons why you would see a big bump like Microsoft, there's often the sense that there's a big amount of value in the organization, whether it be cash or cash flows from things like Windows and the Office suite and there's a concern that the CEO is going to waste that money, going to spend it frivolously trying to chase down some new opportunity and so when that cash and that treasure is kind of protected, the investor is certainly going to react very positively to that kind of a change."

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