The Cultural Origin of CEOs' Attitudes toward Uncertainty: Evidence from Corporate Acquisitions

• 成果类型: Article
• 署名作者: Pan, Yihui; Siegel, Stephan; Wang, Tracy Yue
• 署名单位: Utah System of Higher Education; University of Utah; University of Washington; University of Washington Seattle; University of Minnesota System; University of Minnesota Twin Cities
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz109
• 发表日期: 2020
• 页码: 2977
• 关键词: genetic-variation; NATIONAL CULTURE; RISK; transmission; performance; DECISION; tolerance; Managers; religion; MARKET

摘要

We examine the role of cultural heritage in shaping U.S. CEOs' attitudes toward uncertainty, in the context of their corporate acquisition decisions. We find that CEOs with a more uncertainty-avoiding cultural heritage are less likely to engage in acquisitions. Conditional on making an acquisition, uncertainty-averse CEOs prefer targets in familiar industries and targets that can be more easily integrated. The emphasis on cultural identity by CEOs' parents and the ethnic composition of CEOs' early life environment significantly influence the cultural transmission process. Cultural differences about uncertainty attitudes persist over multiple generations, but become less pronounced over time.