Does the director labor market offer ex post settling-up for CEOs? The case of acquisitions

• 成果类型: Article
• 署名作者: Harford, Jarrad; Schonlau, Robert J.
• 署名单位: University of Washington; University of Washington Seattle; Brigham Young University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.04.013
• 发表日期: 2013
• 页码: 18-36
• 关键词: mergers; Director labor market; ceo incentives; career concerns; Board of directors

摘要

We examine the rewards for experience and ability in the director labor market. We show that large acquisitions are associated with significantly higher numbers of subsequent board seats for the acquiring CEO, target CEO, and the directors. We also find that, in the case of acquisitions, experience is more important than ability. Both value-destroying and value-increasing acquisitions have significant and positive effects on a CEO's future prospects in the director labor market. In addition to increasing our understanding of the director labor market, these results suggest that the ex post settling-up incentives thought to exist in the director labor market are weak for acquisitions. (c) 2013 Elsevier B.V. All rights reserved.