COMMUNICATION- Does Steve Jobs Death Cause Panic to Apple Shareholders

Abstract

The study quantifies the stock price reaction o f the Apple Inc. to the death broadcast o f the Apple chairman Steve Jobs. It also investigates the stock price effects to Steve Jobs resignation from CEO o f the company couple o f months hack o f his demise. Event study methodology with Market Model has been applied to compute the abnormal and cumulative abnormal returns over three, five, eleven and twenty one day event window. The overall results suggested that there was a powerful connection between Apple Inc and Steve Jobs. The shareholders wealth was diluted as soon as Steves death and resignation information spread into the market. Nevertheless, there was a sudden and unexpected rise in stock prices in post event days fo r both (death and resignation) and we argue and attribute the cause to the positive information that came to the market subsequent to Steves resignation and his demise