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CEO Narcissism and the Takeover Process: From Private Initiation to Deal Completion

Aktas, Nihat and de Bodt, Eric and Bollaert, Helen and Roll, Richard (2016) CEO Narcissism and the Takeover Process: From Private Initiation to Deal Completion. Journal of Financial and Quantitative Analysis, 51 (1). pp. 113-137. ISSN 0022-1090. https://resolver.caltech.edu/CaltechAUTHORS:20160512-090418124

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Abstract

Chief executive officer (CEO) narcissism affects the takeover process. Acquirer shareholders react less favorably to a takeover announcement when the target CEO is more narcissistic. Narcissistic acquiring CEOs negotiate faster. They are also marginally more likely to initiate deals. Acquirer CEO narcissism and target CEO narcissism are associated with a lower probability of deal completion and reduce the likelihood that the target CEO will be employed by the merged firm. Our findings highlight the importance of both acquirer and target CEO psychological characteristics throughout the takeover process.


Item Type:Article
Related URLs:
URLURL TypeDescription
http://dx.doi.org/10.1017/S0022109016000065DOIArticle
http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=10275469PublisherArticle
Additional Information:© 2016 Michael G. Foster School of Business, University of Washington. Published online: 23 March 2016. We are grateful to Adam Kolasinski (the referee) and Paul Malatesta (the editor) for their constructive comments. We thank Audra Boone, W. Keith Campbell, François Derrien, Matthias Kahl, Sebastien Michenaud, Christophe Pérignon, Luc Renneboog, Armin Schwienbacher, Geoffrey Tate, Karin Thorburn, Amy Wang, participants of the 2011 European Finance Association annual meeting (Stockholm), and participants of the 2012 American Finance Association annual meeting (Chicago) for their comments and suggestions.
Issue or Number:1
Record Number:CaltechAUTHORS:20160512-090418124
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20160512-090418124
Official Citation:Nihat Aktas, Eric de Bodt, Helen Bollaert and Richard Roll (2016). CEO Narcissism and the Takeover Process: From Private Initiation to Deal Completion. Journal of Financial and Quantitative Analysis, 51, pp 113-137. doi:10.1017/S0022109016000065
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:67044
Collection:CaltechAUTHORS
Deposited By: Tony Diaz
Deposited On:12 May 2016 23:20
Last Modified:03 Oct 2019 10:02

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