CEO inside debt and the acquisition of private targets

被引：10

作者：

Bhabra, Gurmeet S. ^{[1
]}

Bhabra, Harjeet S. ^{[2
]}

Hossain, Ashrafee T. ^{[3
]}

机构：

[1] Griffith Univ, Dept Accounting Finance & Econ, Brisbane, Qld, Australia

[2] St Marys Univ, Sobey Sch Business, Halifax, NS, Canada

[3] Mem Univ Newfoundland, Fac Business Adm, St John, NF, Canada

来源：

ACCOUNTING AND FINANCE | 2022年 / 62卷 / 02期

关键词：

Inside debt; Deferred compensation; Private targets; Executive compensation; CEO risk preference; EXECUTIVE-COMPENSATION; MANAGERIAL INCENTIVES; UNOBSERVED VARIABLES; AGENCY COSTS; CASH FLOW; CORPORATE; RISK; FIRM; INVESTMENT; TAKEOVERS;

D O I：

10.1111/acfi.12857

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We find a strong positive association between the inside debt holdings (pension benefits and deferred compensation) of CEOs and announcement-period abnormal returns (CARs) of acquiring firms bidding for private targets. In addition, gains to acquirers with high inside debt persist for at least 3 years post-acquisition. Further analyses suggest that our results are largely driven by firms with lower levels of manager-shareholder agency conflicts as proxied by higher transparency in firm activities, presence of a less powerful CEO, or presence of stronger monitoring. Our results are robust to an array of sensitivity tests.

引用

页码：2163 / 2202

页数：40

共 78 条

[1] MANAGERIAL INCENTIVES AND CORPORATE-INVESTMENT AND FINANCING DECISIONS [J].

AGRAWAL, A ;

MANDELKER, GN .

JOURNAL OF FINANCE, 1987, 42 (04) :823-837

[2] CEO Narcissism and the Takeover Process: From Private Initiation to Deal Completion [J].

Aktas, Nihat ;

de Bodt, Eric ;

Bollaert, Helen ;

Roll, Richard .

JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 2016, 51 (01) :113-137

[3] Selection on observed and unobserved variables: Assessing the effectiveness of Catholic schools [J].

Altonji, JG ;

Elder, TE ;

Taber, CR .

JOURNAL OF POLITICAL ECONOMY, 2005, 113 (01) :151-184

[4] Inside Debt and the Design of Corporate Debt Contracts [J].

Anantharaman, Divya ;

Fang, Vivian W. ;

Gong, Guojin .

MANAGEMENT SCIENCE, 2014, 60 (05) :1260-1280

[5] New evidence and perspectives on mergers [J].

Andrade, G ;

Mitchell, M ;

Stafford, E .

JOURNAL OF ECONOMIC PERSPECTIVES, 2001, 15 (02) :103-120

[6]

Atanasov V. A., 2016, Critical Finance Review, V5, P207, DOI [DOI 10.1561/104.00000036, 10.1561/104.00000036]

[7] Detecting long-run abnormal stock returns: The empirical power and specification of test statistics [J].

Barber, BM ;

Lyon, JD .

JOURNAL OF FINANCIAL ECONOMICS, 1997, 43 (03) :341-372

[8]

Bebchuk L.A., 2005, J CORPORATION LAW, V30, P823

[9] Sarbanes-Oxley Act and the acquisition of private targets [J].

Bhabra, Gurmeet S. ;

Bhabra, Harjeet S. ;

Hossain, Ashrafee T. .

ACCOUNTING AND FINANCE, 2021, 61 :1457-1487

[10] Unobservable, but unimportant? The relevance of usually unobserved variables for the evaluation of labor market policies [J].

Caliendo, Marco ;

Mahlstedt, Robert ;

Mitnik, Oscar A. .

LABOUR ECONOMICS, 2017, 46 :14-25

← 1 2 3 4 5 6 7 8 →