Ethnicity and homophily effects in US M&As

IF 9.4 3区 管理学 Q1 BUSINESS, FINANCE
Yasser Alhenawi, M. Kabir Hassan
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引用次数: 0

Abstract

We show that ethnic diversity of CEOs of merging firms has been increasing and report evidence of ethnic homophily effect in M&As transactions. Specifically, M&As perform better when the CEOs of the merging firms share a common ethnic background. In a sample of 444 US mergers completed between 2000 and 2018, we find that ethnic homophily improves the probability of deal completion. Furthermore, we report mild variation of performance across ethnic groups. White CEOs exhibit better postmerger performance while Asian CEOs instigate a better market reaction (announcement return). Subsequent analyses show that White CEOs tend to have longer tenure and longer experience while Asian CEOs tend to be more transparent. We discuss our findings in light of a few extant theories and show that our findings are robust to several additional tests including instrumental variables, Heckman's selection bias correction, and several variations in the model specifications and definitions of key variables.

美国并购中的种族性和同质性效应
我们发现并购公司CEO的种族多样性一直在增加,并报告了并购中种族同质性效应的证据;作为交易。具体而言;当合并公司的首席执行官有共同的种族背景时,As表现更好。在2000年至2018年间完成的444宗美国合并的样本中,我们发现种族同质性提高了交易完成的概率。此外,我们报告了不同种族群体表现的轻微差异。白人CEO在合并后表现更好,而亚裔CEO则引发了更好的市场反应(公告回报)。随后的分析表明,白人首席执行官的任期和经验往往更长,而亚裔首席执行官往往更透明。我们根据一些现存的理论讨论了我们的发现,并表明我们的发现对几个额外的测试是稳健的,包括工具变量、赫克曼选择偏差校正,以及模型规范和关键变量定义的几个变化。
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来源期刊
CiteScore
9.10
自引率
2.00%
发文量
23
期刊介绍: The Journal of International Financial Management & Accounting publishes original research dealing with international aspects of financial management and reporting, banking and financial services, auditing and taxation. Providing a forum for the interaction of ideas from both academics and practitioners, the JIFMA keeps you up-to-date with new developments and emerging trends.
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