Historical Analysis: Do Returning Founder CEOs Boost A Company’s Stock Price?

Twitter Inc TWTR 0.36% and Pandora Media Inc P 5.63% are the latest companies hoping that a blast from the past can kick-start their businesses. Both companies are struggling with generating profits, and both have recently named founders of the company to the CEO position in an effort to turn things around.

According to Fundstrat analyst George Gianarikas, bringing back a founder as CEO has historically been a gamble for public companies.

“Our findings suggest that investing in a founder’s return as CEO has a mixed track record with a 1) win ratio below 50 percent, 2) average returns slightly below that of the S&P 500 total return index, 3) average returns slightly…

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