Industry experiences of board, CEO, and acquisition performance

Debarati Bhattacharya; Ya Yun Kao; Wei Hsien Li

doi:10.1142/S0219091520500228

Industry experiences of board, CEO, and acquisition performance

Debarati Bhattacharya, Ya Yun Kao, Wei Hsien Li

財務金融學系

研究成果: 雜誌貢獻 › 期刊論文 › 同行評審

3 引文斯高帕斯（Scopus）

摘要

This study examines the collective impact of expert boards and CEOs on acquisition performance, providing new insight into the CEO-board relationship. Acquiring firms with expert boards earns an additional 1.16 percentage points (3.91 percentage points) when the CEOs are new to the target industry (also experts) compared to the firms with \nonexperienced" boards (expert boards alone). Robust to endogeneity checks, our evidence supports the \vigilant-advisor", \resource-provisioning", and \shared-experience" hypotheses that take three distinct views of the CEO-board relationship. Generalist CEOs and public targets intensify the shared-experience effect, whereas less powerful CEOs and private targets intensify the resource-provisioning effect. Experienced directors improve the quality of acquisitions by assisting acquirers to avoid large losses, identify targets with higher synergies, and negotiate better deals.

原文	???core.languages.en_GB???
文章編號	2050022
期刊	Review of Pacific Basin Financial Markets and Policies
卷	23
發行號	3
DOIs	https://doi.org/10.1142/S0219091520500228
出版狀態	已出版 - 1 9月 2020

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10.1142/S0219091520500228

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AU - Bhattacharya, Debarati

AU - Kao, Ya Yun

AU - Li, Wei Hsien

N1 - Publisher Copyright: © World Scientific Publishing Co. and Center for Pacific Basin Business, Economics and Finance Research

PY - 2020/9/1

Y1 - 2020/9/1

N2 - This study examines the collective impact of expert boards and CEOs on acquisition performance, providing new insight into the CEO-board relationship. Acquiring firms with expert boards earns an additional 1.16 percentage points (3.91 percentage points) when the CEOs are new to the target industry (also experts) compared to the firms with \nonexperienced" boards (expert boards alone). Robust to endogeneity checks, our evidence supports the \vigilant-advisor", \resource-provisioning", and \shared-experience" hypotheses that take three distinct views of the CEO-board relationship. Generalist CEOs and public targets intensify the shared-experience effect, whereas less powerful CEOs and private targets intensify the resource-provisioning effect. Experienced directors improve the quality of acquisitions by assisting acquirers to avoid large losses, identify targets with higher synergies, and negotiate better deals.

AB - This study examines the collective impact of expert boards and CEOs on acquisition performance, providing new insight into the CEO-board relationship. Acquiring firms with expert boards earns an additional 1.16 percentage points (3.91 percentage points) when the CEOs are new to the target industry (also experts) compared to the firms with \nonexperienced" boards (expert boards alone). Robust to endogeneity checks, our evidence supports the \vigilant-advisor", \resource-provisioning", and \shared-experience" hypotheses that take three distinct views of the CEO-board relationship. Generalist CEOs and public targets intensify the shared-experience effect, whereas less powerful CEOs and private targets intensify the resource-provisioning effect. Experienced directors improve the quality of acquisitions by assisting acquirers to avoid large losses, identify targets with higher synergies, and negotiate better deals.

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Industry experiences of board, CEO, and acquisition performance

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