Read the article “I will take Tesco back to core values, says new chief Dave Lewis” and

Read the provided Telegraph article discussing the message provided by Tesco’s new CEO, who took up his new post on September 1st, 2014. The appointment of the new CEO came following drops in profits in the past few years. Refer also to the provided 2014 Tesco annual report and prepare the following:

a) Provide evidence as to how the market reacted to the announcement of the appointment of the new CEO in the 3 day window around the announcement (days -1, 0, 1). This evidence can be shown in a tabular or a graphical form. You should compare the price change in Tesco to the overall market price changes in those same days (FTSE100).

b) Discuss the possible reasons behind the reaction of the investors, if any, and in particular refer to Tesco’s corporate governance as well as the executive remuneration before the new appointment and how it may have affected the reaction. In your analysis, you should also refer to the industry of the company and any other economic or regulatory factors you deem important.