Acquisition premiums, CEO power, and the financial crisis

Fralich, Russell; Wang, Xuan; England, Allyson

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dc.creator	Fralich, Russell
dc.creator	Wang, Xuan
dc.creator	England, Allyson
dc.date.accessioned	2019-06-04T12:27:09Z
dc.date.available	2019-06-04T12:27:09Z
dc.date.issued	2014
dc.identifier	http://library2.smu.ca/bitstream/handle/01/28851/asb_proceedings_2014.pdf?sequence=1&isAllowed=y#page=217
dc.identifier.uri	http://library2.smu.ca/handle/01/28870
dc.description.abstract	What happens to acquisition price premiums when a powerful bidder CEO confronts a powerful CEO of the target firm? We examine the effect of relative power relationships between the CEOs of the bidder and target firms to explain acquisition overpayment. Our results point to separate sources of power for the acquirer and target CEOs that affect premiums. Acquirer CEOs use power derived from their social networks to improve their ability to judge post-crisis acquisition quality, streamline board decision-making, and reduce premiums. However, target CEOs use only their hierarchical power to reinforce their negotiation stance, driving premiums higher.	en_CA
dc.description.provenance	Submitted by Hansel Cook (hansel.cook@smu.ca) on 2019-06-04T12:27:09Z No. of bitstreams: 1 asb_proceedings_2014.pdf: 7314968 bytes, checksum: 96a2102db4b321431f167bd2f611b328 (MD5)	en
dc.description.provenance	Made available in DSpace on 2019-06-04T12:27:09Z (GMT). No. of bitstreams: 1 asb_proceedings_2014.pdf: 7314968 bytes, checksum: 96a2102db4b321431f167bd2f611b328 (MD5) Previous issue date: 2014	en
dc.language.iso	en	en_CA
dc.publisher	Atlantic Schools of Business	en_CA
dc.subject.lcsh	Consolidation and merger of corporations
dc.subject.lcsh	Chief executive officers
dc.subject.lcsh	Power (Social sciences)
dc.title	Acquisition premiums, CEO power, and the financial crisis	en_CA
dc.type	Text	en_CA
dcterms.bibliographicCitation	Proceedings of the 44th Atlantic Schools of Business conference, Mount Saint Vincent University, 2014, pp 217-231