Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 27, 2018 erstellt
Description:
This paper investigates whether and how CEO acquisition-selectivity skill differences have significant cross-sectional effects on firm value. We document that CEO acquisition-selectivity skill and firm performance are diverse in the cross-section of acquiring firms. CEOs with low acquisition-selectivity skill, about 49% of our sampled deals, experienced significant negative abnormal returns. On the contrary, CEOs with exceptional acquisition-selectivity skill (20%) created not only the highest abnormal returns by carrying out positive NPV acquisitions but also significantly raised the long-term efficiency gains of acquiring firms. Our results are robust to several endogeneity concerns including an analysis of exogenous CEO departures to other firms and CEO sudden deaths