Accounting and Finance Internal Seminar: Tom Aabo, AU

Title: Love thy neighbor: CEO extraversion and corporate acquisitions

Info about event


Thursday 1 June 2023,  at 12:15 - 12:45


Fuglesangs Allé 4, Building 2630(K), Room 101


Stefan Hirth and Anders Merrild Posselt

Presenter: Tom Aabo, AU

Title: Love thy neighbor: CEO extraversion and corporate acquisitions

Abstract: We investigate the relationship between CEO extraversion and the geographical dispersion of acquisitions within the U.S. The dispersion decision is important and has implications for employment, investments, and valuation. We show that extraverted CEOs prefer local deals and that the stock market favors local acquisitions made by extraverted CEOs. Our results support the notion that the extended and information-rich, local networks of extraverted CEOs as well as the agentic qualities of these CEOs facilitate the acquisition of local target firms. Our results are important in illuminating the channels through which extraverted CEOs make acquisitions and create value.

Organizers: Stefan Hirth and Anders Merrild Posselt