Does Managerial Experience in a Target Firm Matter for the Retention of Managers after M&As?

Kenjiro Hirata, Ayako Suzuki and Katsuya Takii
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Kenjiro Hirata: Faculty of Economics, Kobe International University
Ayako Suzuki: School of International Liberal Studies, Waseda University

No 16E006, OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University

Abstract: This paper examines how managers' tenures in target firms influence their probability of retention as board members after mergers or acquisitions in Japanese firms. It develops a model that distinguishes several hypotheses about the effect of tenure on separation. Our results suggest that experience as an employee increases firm-specific skills, but at the expense of the ability to learn new skills. However, experience as a board member does not have this effect in Japanese firms, the structure of which is known to encourage specific skills. Further, we provide a novel method to correct for selection biases when using data on managers.

Keywords: Tenure; Retention of Managers and Post M&As (search for similar items in EconPapers)
JEL-codes: G34 J62 M5 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2016-05
New Economics Papers: this item is included in nep-bec and nep-lab
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http://www.osipp.osaka-u.ac.jp/archives/DP/2016/DP2016E006.pdf (application/pdf)

Related works:
Working Paper: Does Managerial Experience in a Target Firm Matter for the Retention of Managers after M&As? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:osp:wpaper:16e006

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