CEO International Background and Cross-Border M&As

Busra Agcayazi, Ann Marie Hibbert and Thibaut G. Morillon

Journal of Banking & Finance, 2024, vol. 164, issue C

Abstract: We investigate whether having a CEO with an international background affects U.S. firms’ cross-border merger and acquisition (M&A) activities. By defining international background as having either non-U.S. nationality, overseas education, or foreign work experience, we provide robust evidence that when a CEO possesses these characteristics, a firm is more likely to acquire international targets, and these deals are more value-enhancing. Moreover, our results indicate that when a firm’s CEO has all of these international characteristics (compared to just one), both the likelihood of cross-border deals and announcement returns increase. The observed gains are related, at least in part, to CEOs with this background being associated with lower acquisition premium and mitigating the negative impact of paying for these deals with equity.

Keywords: Cross-Border M&As; CEO Background; International CEOs; Mergers and Acquisitions (search for similar items in EconPapers)
JEL-codes: G15 G34 G41 M12 M14 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378426624000499
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:164:y:2024:i:c:s0378426624000499

DOI: 10.1016/j.jbankfin.2024.107129

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().