The executive effect and firm acquisition performance: three studies on how executive characteristics affect acquisition stock market and financial performance outcomes

• Other Authors: Lin, Shanshan (author.)
• Format: Others
• Language: English; Chinese
• Published: 2015
• Subjects: Consolidation and merger of corporations; Chief executive officers; HD2746.5 .L55 2015eb
• Online Access: http://repository.lib.cuhk.edu.hk/en/item/cuhk-1290685

For decades, acquisitions have been a remarkably popular and controversial phenomenon all over the world. However, little is known about how acquisition performance is affected by the characteristics of top executives of the acquiring as well as the target company. Acquisition performance can be examined both as investor reactions to acquisition announcements on the stock market and as post-acquisition performance of the newly integrated company. Drawing upon several research streams (signaling theory, the behavioral decision making perspective, the resource-based view, and social network research), this dissertation reports on three independent but interrelated studies that examine the effects of executive human and social capital characteristics on acquisition performance. === Study 1 focuses on the firm tenure of the acquiring company’s CEO and shows that investors responded to acquisition deals more favorably when the deals were made by either short- or long-tenured CEOs, especially when the CEO was also the chairperson of the board and when he/she had received higher compensation. Study 2 shifts the focus from stock market reactions to post-acquisition firm performance. This study examines post-acquisition integration in the form of knowledge contributions made by the executives from the target company who were retained in the newly integrated company. Results show that the positive effect of retention of target executives was stronger when an acquisition was unrelated and when the target firm was relatively small. Study 3 explores the effects of acquiring CEOs’ social ties on investor reactions to acquisition announcements and compares the effects between manufacturing and hospitality industries. === This dissertation contributes to both the acquisition research and the research on corporate executives. It contributes to the acquisition literature by applying a multi-stage view of acquisition performance and explicitly examining the performance implications of key decision makers’ characteristics. It also contributes to the executive effect literature by uncovering an unconventional U-shaped curvilinear relationship between executive tenure and acquisition performance. More important, the study examines the corporate governance mechanisms that may modify the executive effects on acquisition performance. === 企業收購是近幾十年來十分流行而又具有爭議的現象。然而，我們對高管的特徵如何影響企業收購的績效卻知之甚少。收購績效可定義爲收購公告發佈時股票市場的反應和收購完成之後的新公司的財務業績。本文綜合了來自信號理論、決策行爲、資源基礎理論和社會網路方面的文獻，用三個相互獨立而又相互聯繫的三個研究來檢驗高管的人力資本和社會資本對收購績效的影響。首先，本文提出，股市投資者傾向於更加歡迎那些由年資很短或者很長的首席執行官所執行的收購，尤其是當首席執行官同時是董事會主席或者薪酬水準很高的情況下。第二，本文從收購完成後，留用的目標公司高管知識貢獻的大小來考察收購後的整合。研究結果表明，在非相關收購和在兩家公司規模差異較大的情況下，目標公司高管留用對收購後財務業績的正向效應更加明顯。第三，本文還從社會資本的角度出發，探討了收購公司首席執行官的社會關係對股市反應的作用在酒店業收購和製造業收購的差異。本文對收購和公司高管研究的貢獻主要體現在以下三個方面。首先，從收購是多階段現象這一視角，本文檢驗了高管對收購績效的影響，豐富了關於收購的研究。其次，本文通過揭示在收購情形下任期與績效的U型關係，拓展了關於高管效應的研究。更重要的是，本文還考察了公司治理機制如何完善高管對收購績效的作用。 === Lin, Shanshan. === Thesis (Ph.D.)--Chinese University of Hong Kong, 2015. === Includes bibliographical references (leaves 203-223). === Abstracts also in Chinese. === Title from PDF title page (viewed on 30, September, 2016). === Detailed summary in vernacular field only.