The Effect of leadership stability, agency problems, and animal spirits on M&A outcomes in Australia

Nigel S. Garrow

The Effect of leadership stability, agency problems, and animal spirits on M&A outcomes in Australia

Nigel S. Garrow

Macquarie Graduate School of Management

Research output: Chapter in Book/Report/Conference proceeding › Conference proceeding contribution › peer-review

Abstract

Mergers and acquisitions continue to be value destroying for many acquiring firm shareholders. Lack of continuity of tenure, agency problems and animal spirits in the acquiring and acquired firms may contribute to this loss of value. This study examines acquisitions in Australia between 1990 and 2006, when the roles of chairman and chief executive were performed by different people in the acquiring firm. The study finds that the period of joint tenure, when the Chairman and CEO have been in their respective roles together, is a statistically significant contributor to acquiring firm shareholder value during the three year period following completion of the acquisition. Agency problems and animal spirits are also found to be important influences on M&A outcomes.

Original language	English
Title of host publication	Proceedings of the 24th ANZAM Conference
Subtitle of host publication	managing for unknowable futures
Editors	Bruce Gurd
Publisher	Australian and New Zealand Academy of Management
Pages	1-16
Number of pages	16
ISBN (Print)	1877040827
Publication status	Published - 2010
Event	Australia and New Zealand Academy of Management Conference (24th : 2010) - Adelaide Duration: 8 Dec 2010 → 10 Dec 2010

Conference

Conference	Australia and New Zealand Academy of Management Conference (24th : 2010)
City	Adelaide
Period	8/12/10 → 10/12/10

Cite this

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title = "The Effect of leadership stability, agency problems, and animal spirits on M\&A outcomes in Australia",

abstract = "Mergers and acquisitions continue to be value destroying for many acquiring firm shareholders. Lack of continuity of tenure, agency problems and animal spirits in the acquiring and acquired firms may contribute to this loss of value. This study examines acquisitions in Australia between 1990 and 2006, when the roles of chairman and chief executive were performed by different people in the acquiring firm. The study finds that the period of joint tenure, when the Chairman and CEO have been in their respective roles together, is a statistically significant contributor to acquiring firm shareholder value during the three year period following completion of the acquisition. Agency problems and animal spirits are also found to be important influences on M\&A outcomes.",

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editor = "Bruce Gurd",

booktitle = "Proceedings of the 24th ANZAM Conference",

publisher = "Australian and New Zealand Academy of Management",

address = "Australia",

note = "Australia and New Zealand Academy of Management Conference (24th : 2010) ; Conference date: 08-12-2010 Through 10-12-2010",

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The Effect of leadership stability, agency problems, and animal spirits on M&A outcomes in Australia. / Garrow, Nigel S.
Proceedings of the 24th ANZAM Conference: managing for unknowable futures. ed. / Bruce Gurd. Australian and New Zealand Academy of Management, 2010. p. 1-16.

Research output: Chapter in Book/Report/Conference proceeding › Conference proceeding contribution › peer-review

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N2 - Mergers and acquisitions continue to be value destroying for many acquiring firm shareholders. Lack of continuity of tenure, agency problems and animal spirits in the acquiring and acquired firms may contribute to this loss of value. This study examines acquisitions in Australia between 1990 and 2006, when the roles of chairman and chief executive were performed by different people in the acquiring firm. The study finds that the period of joint tenure, when the Chairman and CEO have been in their respective roles together, is a statistically significant contributor to acquiring firm shareholder value during the three year period following completion of the acquisition. Agency problems and animal spirits are also found to be important influences on M&A outcomes.

AB - Mergers and acquisitions continue to be value destroying for many acquiring firm shareholders. Lack of continuity of tenure, agency problems and animal spirits in the acquiring and acquired firms may contribute to this loss of value. This study examines acquisitions in Australia between 1990 and 2006, when the roles of chairman and chief executive were performed by different people in the acquiring firm. The study finds that the period of joint tenure, when the Chairman and CEO have been in their respective roles together, is a statistically significant contributor to acquiring firm shareholder value during the three year period following completion of the acquisition. Agency problems and animal spirits are also found to be important influences on M&A outcomes.

M3 - Conference proceeding contribution

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SP - 1

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BT - Proceedings of the 24th ANZAM Conference

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T2 - Australia and New Zealand Academy of Management Conference (24th : 2010)

Y2 - 8 December 2010 through 10 December 2010

ER -

The Effect of leadership stability, agency problems, and animal spirits on M&A outcomes in Australia

Abstract

Conference

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