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

Western Sydney University

Research output: Chapter in Book / Conference Paper › Conference Paper › peer-review

Abstract

![CDATA[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	Managing for Unknown Futures: Proceedings of the 24th Annual Australian and New Zealand Academy of Management Conference, 8-10 December 2010, Adelaide Convention Centre, Australia
Publisher	ANZAM
Number of pages	16
ISBN (Print)	1877040819
Publication status	Published - 2010
Event	Australian and New Zealand Academy of Management. International conference - Duration: 7 Dec 2011 → …

Conference

Conference	Australian and New Zealand Academy of Management. International conference
Period	7/12/11 → …

Keywords

leadership
consolidation and merger of corporations
chief executive officers
animal spirits
Australia

Cite this

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

abstract = "![CDATA[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.]]",

keywords = "leadership, consolidation and merger of corporations, chief executive officers, animal spirits, Australia",

author = "Garrow, \{Nigel S.\}",

year = "2010",

language = "English",

isbn = "1877040819",

booktitle = "Managing for Unknown Futures: Proceedings of the 24th Annual Australian and New Zealand Academy of Management Conference, 8-10 December 2010, Adelaide Convention Centre, Australia",

publisher = "ANZAM",

note = "Australian and New Zealand Academy of Management. International conference ; Conference date: 07-12-2011",

}

Garrow, NS 2010, The effect of leadership stability, agency problems, and animal spirits on M&A outcomes in Australia. in Managing for Unknown Futures: Proceedings of the 24th Annual Australian and New Zealand Academy of Management Conference, 8-10 December 2010, Adelaide Convention Centre, Australia. ANZAM, Australian and New Zealand Academy of Management. International conference, 7/12/11.

The effect of leadership stability, agency problems, and animal spirits on M&A outcomes in Australia. / Garrow, Nigel S.
Managing for Unknown Futures: Proceedings of the 24th Annual Australian and New Zealand Academy of Management Conference, 8-10 December 2010, Adelaide Convention Centre, Australia. ANZAM, 2010.

Research output: Chapter in Book / Conference Paper › Conference Paper › peer-review

TY - GEN

T1 - The effect of leadership stability, agency problems, and animal spirits on M&A outcomes in Australia

AU - Garrow, Nigel S.

PY - 2010

Y1 - 2010

N2 - ![CDATA[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 - ![CDATA[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.]]

KW - leadership

KW - consolidation and merger of corporations

KW - chief executive officers

KW - animal spirits

KW - Australia

UR - http://handle.westernsydney.edu.au:8081/1959.7/uws:38700

M3 - Conference Paper

SN - 1877040819

BT - Managing for Unknown Futures: Proceedings of the 24th Annual Australian and New Zealand Academy of Management Conference, 8-10 December 2010, Adelaide Convention Centre, Australia

PB - ANZAM

T2 - Australian and New Zealand Academy of Management. International conference

Y2 - 7 December 2011

ER -

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

Abstract

Conference

Keywords

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