Ceo Overconfidence in M&a Decision Making and Its Impact on Firm Performance

chief direct officer cocksureness in M&A finish fashioning and its encroachment on starchy performance Yue (Lucy) Liu* and Richard Taffler Management school day University of Edinburgh Keywords: chief operating officer Overconfidence, Mergers and Acquisitions, Short-term performance, Long-term performance JEL Classification: G14, G34 * intimacy power: Address: Room 2.23, 2nd Floor, 15 Buccleuch Place, Edinburgh, EH8 9LN, UK Teleph one(a) come along: +44(0)7894278843 Fax number: +44 (0)131 668 3053 e-mail address: Y.Liu-32@sms.ed.ac.uk  chief executive officer Overconfidence in M&A decision booking and its meeting on firm performance Abstract utilise a extensive sample of over 2,300 US M&A deals from 1993 to 2005, and data on more than 3,400 CEOs, we explore optical fusion and acquisition activities from a behavioural perspective, and provide another write up of M&A motives and firm stock performance. We empirically analyse if overco nfident CEOs be more belike to conduct mergers than intelligent CEOs. We also ensure the impact of CEO certitude yield on food market reaction to firm M&A proclamations, and also long post-M&A stock returns. We lead off out evidence that overconfident CEOs ar more likely to conduct mergers and acquisitions than rational CEOs. Acquiring firm CEO overconfidence also has a significantly disconfirming impact on both short-term and long-term post-M&A performance. In addition, our results read that target firm CEO overconfidence similarly negatively affects acquiring firm short-term performance. However, we find that effective corporeal governance mechanisms ameliorate, to some extent, the adverse impact of overconfidence yield on M&A activities. 2 CEO Overconfidence in M&A decision making and its impact on firm performance 1. Introduction M&A is one of the most significant and important phenomena in economics and finance. It has a impact on corporate performan ce. There be a large number of studies expl! oring both major acquirer announcement period and long-run abnormal returns. Most cover cut through very...If you want to get a bounteous essay, order it on our website: OrderCustomPaper.com

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