Open Access. Powered by Scholars. Published by Universities.®

Finance and Financial Management Commons

Open Access. Powered by Scholars. Published by Universities.®

Social and Behavioral Sciences

Old Dominion University

2020

Generalist skills

Articles 1 - 1 of 1

Full-Text Articles in Finance and Financial Management

The Effects Of Ceo Dismissal Risk And Skills On Risky Corporate Decisions And Ceo Compensation, Son T. Dang Aug 2020

The Effects Of Ceo Dismissal Risk And Skills On Risky Corporate Decisions And Ceo Compensation, Son T. Dang

Theses and Dissertations in Business Administration

This dissertation consists of three distinct essays on the effects of CEO dismissal risk on M&A megadeal decisions, the association between CEO compensation and generalist managerial ability in the presence of CEO dismissal risk, and the alignment of the initial compensation of new CEOs following CEO dismissals with their managerial ability.

In Essay 1, I study the link between CEO dismissal risk and risky M&A decisions and find that higher-dismissal-risk CEOs engage in more M&A megadeals than their counterparts. Such megadeal transactions lead to lower acquirer post-M&A abnormal returns, suggesting that risky investment decisions are driven by CEOs’ career concerns. …