Similarity as an antecedentfor target’s CEO turnover: Do birds of a feather flocktogether?
(English)Manuscript (preprint) (Other academic)
This paper investigates on behavioral aspects of managerial turnover in post-acquisition period. In particular, the paper aims to determine to what extent demographic similarity between CEOs improves their (intergroup) relations which ultimately causes target’s CEO retention in post-acquisition. The paper found that similarity in demographic characteristics of CEOs increases the probability of announcing the retention of target’s CEO after the deal is closed. Additionally, similarity increases the probability of misjudgment in determining target’s CEO status in post-acquisition period. Finally, the paper found that experience as the acquirer’s capability reduces the effect of similarity. This results is based on acquisition of small high-tech firms between 2001 and 2005.
IdentifiersURN: urn:nbn:se:kth:diva-176415OAI: oai:DiVA.org:kth-176415DiVA: diva2:866815
QS 20152015-11-032015-11-032015-11-12Bibliographically approved