Stock Performance or Entrenchment? The Effects of Mergers and Acquisitions on CEO Compensation

P. Kumar; L. Kuo; Latha Ramchand

DOI:10.2139/ssrn.2132964

Corpus ID: 20619213

Stock Performance or Entrenchment? The Effects of Mergers and Acquisitions on CEO Compensation

@article{Kumar2012StockPO,
  title={Stock Performance or Entrenchment? The Effects of Mergers and Acquisitions on CEO Compensation},
  author={P. Kumar and L. Kuo and Latha Ramchand},
  journal={Econometric Modeling: Corporate Finance & Governance eJournal},
  year={2012}
}

P. Kumar, L. Kuo, Latha Ramchand

Published 2012

Business

Econometric Modeling: Corporate Finance & Governance eJournal

Using a large sample of U.S. acquiring and non-acquiring firms and covering a broad sample of transactions, we examine the effects of mergers and acquisitions (M&A) on CEO compensation during 1993-2006, a period of intense M&A activity. We alleviate endogeneity concerns through dynamic panel data estimation, propensity score matching, and using a natural experiment of exogenous accounting regulatory changes in 2001 that significantly affected the benefits of stock-financed acquisitions. The… CONTINUE READING

View on SSRN