CEO Tenure And Merger Decision'

With the rapid development of the market economy,mergers and acquisitions activities are more and more popular,and more and more enterprises in different industries have carried out mergers and acquisitions.Among them,mergers and acquisitions that pay a high premium and form a high reputation are common.However,merger and acquisition is not a shortcut for enterprises to operate once and for all.With the separation of ownership and management in the process of enterprise operation,the executives,especially the CEO,have more right to speak.But the interests of the CEO and the company are not always in the same direction,and may even be more self-interested.In view of this situation,this paper links CEO with m&a decision and analyzes the different influences of CEO on m&a decision.According to the high-level management theory,the personal characteristics of the CEO are an important factor affecting his decision,and the CEO's tenure is an index that can be objectively observed,quantitatively standardized and with a certain degree of differentiation.Therefore,this paper chooses this index as the starting point for analysis.This paper mainly adopts the literature analysis method and the empirical research method combining theoretical analysis and data analysis to analyze the relationship between CEO's tenure and merger decision from the perspective of principal-agent theory,high-level management theory and management power theory.According to the existing literature,the CEO's tenure is divided into the past completed existing tenure and the expected tenure based on the industry level,and the influence of the CEO's tenure on the two basic indicators of merger and acquisition decisions,whether the company carries out merger and acquisition and the premium paid in the merger and acquisition is observed.It not only helps to enrich the research content of CEO's expected tenure,but also helps to expand the research direction of CEO's tenure,and also helps to expand the research on the influencing factors of merger and acquisition decision.Through research,this paper draws the following conclusions:(1)under the condition that other conditions remain unchanged,the longer the CEO's tenure is.the more inclined he is to merger;The longer the CEO's expected tenure,the less likely he is to make acquisitions.(2)under other conditions unchanged,the longer the existing tenure of the CEO,the higher the merger premium;The longer the CEO's expected tenure,the lower the m&a premium.(3)if other conditions remain unchanged,the state-owned property right will make the relationship between the existing and expected tenure of the CEO and the m&a decision less significant than that of the entire m&a sample.