Melbourne Accounting Research Seminar - Dr Helen Spiropoulos
Melbourne Accounting Research Seminar
Deans Boardroom, level 12, The Spot
198 Berkeley St, Carlton
Dr Helen Spiropoulos from the University of Technology Sydney will present a MARS seminar.
Topic: Powerful CEOs of target firms and M&A outcomes
Abstract: This study examines the influence of the powerful chief executive officer (‘CEO’) of target firms on various merger and acquisition (‘M&A’) outcomes. We find that target firms with a powerful CEO: receive higher bid premiums, are less likely to reject the initial takeover offer, are less likely to have the initial offer price revised by the bidding firm, and the market responds negatively to these takeover announcements. Our results also indicate that the interaction between target CEO power and target CEO substantial shareholdings is positively associated with the likelihood of a hostile takeover, and the likelihood of a bid revision.