The effect of CEO prominence on cross-border acquisitions: An international entrepreneurship approach

Yeongsu Anthony Kim and Feng Helen Liang

Journal of Business Research, 2023, vol. 163, issue C

Abstract: Cross-border acquisitions and cross-border alliances are two of the most popular entry modes for firms, although each entails different levels of risk. In addition to its industry and location, a firm’s choice of entry mode may also be affected by its chief executive officer (CEO). We explore how a CEO’s level of prominence influences a firm’s entry mode choice. Studying the relationship between CEO prominence and firm entry mode choice is imperative because CEO prominence is a predictor of both an individual’s personality and their risk-propensity. We use data from US-based S&P 1500 firms to test how CEO media appearances influence a firm’s choice between cross-border acquisitions and cross-border alliances. The results indicate that prominent CEOs are more likely to engage in cross-border acquisitions than in cross-border alliances. Furthermore, this tendency increases when the CEO has broad managerial experience or international human capital.

Keywords: Entry mode; Cross-border acquisition; Cross-border alliance; CEO prominence; General human capital; International human capital (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296323003089
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:jbrese:v:163:y:2023:i:c:s0148296323003089

DOI: 10.1016/j.jbusres.2023.113950

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().