Time to complete the due diligence phase in mergers and acquisitions: impact of CEO psychological characteristics

被引：7
|
作者：
Gada, Viswa Prasad [1 ]
Popli, Manish [2 ]
Malhotra, Shavin [3 ]
机构：
[1] Indian Inst Management Bodh Gaya, Bodh Gaya, India
[2] Indian Inst Management, Indore 453556, Madhya Pradesh, India
[3] Univ Waterloo, Conrad Sch Entrepreneurship & Business, Waterloo, ON, Canada
来源：
APPLIED ECONOMICS | 2021年 / 53卷 / 50期
关键词：
CEO; deal duration; due diligence phase; mergers and acquisitions; prevention focus; regulatory focus theory; AIDED TEXT ANALYSIS; REGULATORY FOCUS; FIRMS LEARN; DECISION; INFORMATION; SELECTION; WORK; RISK; DETERMINANTS; PERFORMANCE;
D O I：
10.1080/00036846.2021.1931005
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
The CEO is the chief decision-maker with regard to corporate strategy, and extant literature highlights how CEOs' psychological characteristics inform firms' risky strategic choices. In this article, we focus instead on how CEOs' psychological characteristics might lead to risk-mitigation actions. Building on the regulatory focus theory, we investigate the impact of CEO's prevention focus on the due diligence process in merger and acquisition (M&A) deals. Using a sample of 339 majority-stake completed M&A deals by public firms from the United Kingdom, we find that CEOs having a stronger prevention focus increases the time these firms take to complete their M&A deals. We also find that this effect is mitigated when firms acquire target firms in related industries.
引用
收藏
页码：5812 / 5825
页数：14
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