Antecedents of target CEO departure in post-acquisitions: The leading role of founder
(English)Manuscript (preprint) (Other academic)
This study investigates on firm specific human capital of target CEOs in small high-tech firms as the antecedent of their retention after the acquisition. The main finding of the paper is that acquirers are willing to keep the founder-CEOs because of their valuable embedded human capital. This value is to the extent that founder-CEOs compare to professional CEOs have a higher chance of retention when relatedness between acquirer and target is high or when the acquirer structurally integrates the target after the acquisition; the two conditions that general managerial skills and industry specific skills of the CEOs are not of interest for the acquirers. Also the value of firm specific human capital depends on the maturity of the target. The value diminishes as the target is more mature at the time of acquisition. This research is based on empirical analysis of acquisition of small high-tech firms between 2001 and 2005.
IdentifiersURN: urn:nbn:se:kth:diva-176414OAI: oai:DiVA.org:kth-176414DiVA: diva2:866814
QS 20152015-11-032015-11-032015-11-12Bibliographically approved