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

2016/02/01 by Nihat Aktas, Eric de Bodt, Helen Bollaert +1 · 5 citations
Business, Management and Accounting · Psychology · #Corporate Finance and Governance #Personality Traits and Psychology #Auditing, Earnings Management, Governance

paper · doi:10.1017/s0022109016000065

Abstract

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.

Citations

• It's All about Me: Narcissistic Chief Executive Officers and Their Effects on Company Strategy and Performance
• Explaining the Premiums Paid for Large Acquisitions: Evidence of CEO Hubris
• Executive Personality, Capability Cues, and Risk Taking
• The Hubris Hypothesis of Corporate Takeovers
• A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity

Cited by

• Making CEO Narcissism Research Great: A Review and Meta-Analysis of CEO Narcissism
• Leader Narcissism and Outcomes in Organizations: A Review at Multiple Levels of Analysis and Implications for Future Research. [europepmc]
• Narcissistic Leaders-Promise or Peril? The Patterns of Narcissistic Leaders' Behaviors and Their Relation to Team Performance. [europepmc]
• Hometown attachment and corporate social responsibility: Evidence from overseas Chinese entrepreneurs. [europepmc]
• When does digital merger and acquisition create shareholder value? An empirical investigation in the Chinese context. [europepmc]

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