CEO traders and corporate acquisitions

B-Tier
Journal: Journal of Corporate Finance
Year: 2019
Volume: 54
Issue: C
Pages: 107-127

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper investigates whether the personal trading decisions of CEOs are related to their corporate acquisition decisions. We find that the personal trading performance of CEOs across all stocks they trade is significantly and positively related to the short-term performance of their mergers, and that CEOs exhibiting greater turnover on their personal common equity portfolios undertake acquisitions more frequently. Hence, a CEO's risk aversion, confidence and capability are consistent across their personal and corporate investment decisions.

Technical Details

RePEc Handle
repec:eee:corfin:v:54:y:2019:i:c:p:107-127
Journal Field
Finance
Author Count
3
Added to Database
2026-01-25