This paper investigates the effect of social ties between acquirers and targets on merger performance. Using data on educational background and past employment, we construct a measure of the extent of cross-firm social connection between directors and senior executives at the acquiring and the target firms. We find that between-firm social ties have a significantly negative effect on the abnorm...

Today, the proper playing of managerial roles is of special importance in effective and successful management of sports clubs. The present paper aimed to study the managerial roles of sports clubs CEOs in Isfahan Province in the current and desirable conditions. Statistical population included all managers and directors of Sepahan, Zobahan, Foolad Mahan, and Gitipasand sports clubs (N=83), wh...

Is CEO effort important? Using CEO golf play as a measure of leisure, we observe significant variation in the amount of leisure that golfing CEOs consume. CEOs consume more leisure when they have lower equity-based incentives. Consistent with CEO effort being important and some CEOs shirking their firm responsibilities, we find CEOs that golf frequently are associated with firms that have lower...

This paper uses a unique data set to investigate the link between the pay and performance of school principals. It is frequently argued that public sector CEOs are paid like bureaucrats with little reward for good performance. However, this ignores the possibility of implicit labor market incentives. We show that pay is indeed linked to publicly observable performance measures. Moreover poorly ...

The purpose of the study is to extend further from the result studying overconfidence effects of CEOs on single deal of Malmendier and Tate (2008)’s article to study overconfidence effects of CEOs on multiple mergers and acquisitions. Based on the psychological and financial theories, the likelihood of overconfident CEOs acquiring a company is the net effect of two manifestations of overconfide...

Recent research has demonstrated that judgments of Chief Executive Officers' (CEOs') faces predict their firms' financial performance, finding that characteristics associated with higher power (e.g., dominance) predict greater profits. Most of these studies have focused on CEOs of profit-based businesses, where the main criterion for success is financial gain. Here, we examined whether facial a...

I test theories of the recent financial crisis by studying how banks’ pre-crisis investments connect to their CEOs’ beliefs. Using different proxies for beliefs, I find banks with larger housing investments and worse crisis performance had CEOs who were more optimistic ex ante. Banks with the most optimistic CEOs experienced 20 percentage points higher real estate loan growth, and 15 percentage...

We observe many CEOs of big companies as easily as movie stars or sports players on Twitter. Why do they appear on social media and what would be the effect of their Twitter network on the corporate performance and shareholder benefit? This study explores big company CEOs on Twitter. We identify Twitterusing CEOs and examine the impact of their social media activity on the corporate performance...

I classify CEOs as overoptimistic based on their option exercise behavior, and find that overoptimistic CEOs are more likely to pay with cash when market-wide valuations are (moderately) above their long-term trend, but not when market valuations are low. In contrast to rational CEOs, overoptimistic CEOs view their stock as overly costly and prefer cash payment, even during times of high market...

Allowing CEOs to hedge the risk in the compensation contracts their …rms give them has been controversial because such hedging permits the executives to undo some of the incentive e¤ects of those contracts; it also results in a divergence between the compensation …rms pay their senior executives and the compensation those executives e¤ectively receive. We analyze the personal hedging activities...