CEO turnover after acquisitions:: Are bad bidders fired?

• 成果类型: Article
• 署名作者: Lehn, Kenneth M.; Zhao, Mengxin
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; Bentley University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2006.00889.x
• 发表日期: 2006
• 页码: 1759-1811
• 关键词: CORPORATE GOVERNANCE; market valuation; performance; OWNERSHIP; incentives; companies; DIRECTORS; WEALTH

摘要

We examine the relation between bidder returns and the probability of chief executive officer (CEO) turnover in acquiring firms. Using a sample of 714 acquisitions during 1990 to 1998, we find that 47% of CEOs of acquiring firms are replaced within 5 years, including 27% by internal governance, 16% by takeovers, and 4% by bankruptcy. A significant inverse relation exists between bidder returns and the likelihood of CEO turnover. This relation is not associated with governance structure. It also is not significantly different in stock versus cash acquisitions, which appears to be inconsistent with Shleifer and Vishny's theory of stock market driven acquisitions.