The DOI matches its Crossref record; 64 of the 64 references it cites were found in a registry or an index.
How Do CEOs Matter? The Effect of Industry Expertise on Acquisition Returns
Open accessAbstract
This paper shows how chief executive officer (CEO) characteristics affect the performance of acquirers in diversifying takeovers. When the acquirer's CEO has previous experience in the target industry, the acquirer's abnormal announcement returns are between 1.2 and 2.0 percentage points larger than those generated by a CEO who is new to the target industry. This outcome is driven by the industry-expert CEO's ability to capture a larger fraction of the merger surplus. Industry-expert CEOs typically negotiate better deals and pay a lower premium for the target. This effect is stronger when information asymmetry is high and in bilateral negotiations compared to auctions. We also find that industry-expert CEOs on average select lower surplus deals. This evidence is consistent with industry-expert CEOs having superior negotiation skills.
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Cites
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Managing with Style: The Effect of Managers on Firm Policies
Bertrand, M., & Schoar, A. (2003) · The Quarterly Journal of Economics · doi:10.1162/003355303322552775 · Cited by 3,894
CEO Overconfidence and Corporate Investment
MALMENDIER, U., & TATE, G. (2005) · The Journal of Finance · doi:10.1111/j.1540-6261.2005.00813.x · Cited by 3,669
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Who makes acquisitions? CEO overconfidence and the market's reaction☆
MALMENDIER, U., & TATE, G. (2008) · Journal of Financial Economics · doi:10.1016/j.jfineco.2007.07.002 · Cited by 2,754
Stock market driven acquisitions
Shleifer, A., & Vishny, R. W. (2003) · Journal of Financial Economics · doi:10.1016/s0304-405x(03)00211-3 · Cited by 2,065
Corporate Governance and Acquirer Returns
MASULIS, R. W., WANG, C., & XIE, F. (2007) · The Journal of Finance · doi:10.1111/j.1540-6261.2007.01259.x · Cited by 1,772
Why Has CEO Pay Increased So Much?*
Gabaix, X., & Landier, A. (2008) · Quarterly Journal of Economics · doi:10.1162/qjec.2008.123.1.49 · Cited by 1,764
Cited by
Behavioral CEOs: The Role of Managerial Overconfidence
Malmendier, U., & Tate, G. (2015) · Journal of Economic Perspectives · doi:10.1257/jep.29.4.37 · Cited by 371
Metadata
- Authors
- Custódio, C., & Metzger, D.
- Venue
- Review of Financial Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2013-06-21
- Volume
- 26
- Issue
- 8
- Pages
- 2008-2047
- ISSN
- 0893-9454 (ISSN-L)
- 1465-7368
- OpenAlex
- W3124631588
- Cited by
- 299
- References
- 64
- FWCI
- 63.79
- Type
- journal article
- Language
- en
- Open access
- green
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