Target CEO age,ownership decisions,and takeover outcomes |
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| Institution: | 1. Faculty of Finance, University of Economics, The University of Danang, Vietnam;2. Department of Economics and Finance, La Trobe Business School, La Trobe University, Victoria 3086, Australia;3. Faculty of Banking, University of Economics, The University of Danang, Vietnam;1. Monfort College of Business, University of Northern Colorado, Campus Box 128, Greeley, CO 80639, USA;2. School of Business, Stockton University, 101 Vera King Farris Drive, Galloway, NJ 08205, USA;1. High Institute of Management of Sousse, University of Sousse, Tunisia;2. LAMIDED, ISG Sousse, University of Sousse, Tunisia;1. University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group, Richmond Building, Portland Street, PO1 3DE, United Kingdom;2. Al Yamamah University, 7010 King Fahd Road, Al Qirawan, Riyadh 13541, Saudi Arabia;1. Department of Finance and Investment, college of Economics and Administrative Sciences, Al Imam Mohammad Ibn Saud Islamic University (IMSIU), PO Box 5701, Riyadh, Saudi Arabia;2. Faculty of Economics and Management (FSEG) of Sfax, University of SFAX, B.P. 3018 Sfax, Tunisia;1. University of Sousse, Sousse 4054, Tunisia;2. IPAG Business School, Paris 75006, France;3. University of Manouba, Manouba 2010, Tunisia |
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| Abstract: | This paper examines the effect of target CEO age, in association with target corporate governance mechanisms, on the ownership decisions and takeover outcomes in eight East and Southeast Asian countries. The results show that acquirers are more likely to select partial-control acquisitions of target firms managed by older CEOs, and that the impact of target CEO age on the partial-control acquisition propensity is much stronger in emerging markets relative to developed economies. The study further finds that target CEO age leads to a lower probability of obtaining desired equity ownership levels compared to unmatched ownership achievements, controlling for target corporate governance structures. The findings also run robustness checks regarding variations in the compulsory acquisition cut-off in the sample countries. Overall, this paper adds to the growing of mainstream corporate governance literature regarding the relevance of CEO personal characteristics in agency problems for corporate decisions. |
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| Keywords: | CEO age Ownership choices in takeovers Corporate governance East and Southeast Asia |
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