: 2014 - 007 Business School Discipline of Finance Discussion Paper 2014 - 007 “ Corporate Acquisitions of CEO Traders ”
نویسندگان
چکیده
This paper investigates whether the personal trading decisions of CEOs are related to their corporate acquisition decisions. We find that the personal trading performance of CEOs is significantly and positively related to the short-term market reaction to their mergers and CEOs exhibiting greater turnover on their personal common equity portfolios undertake acquisitions more frequently. Hence a CEOs’ risk aversion, confidence and capability are consistent across their personal and corporate investment decisions. Our findings are consistent with existing theoretical framework and empirical studies of trading and acquisition behavior Benos (1998); Odean (1999); Hirshleifer and Luo (2001); Aktas, DeBodt and Roll (2009); Frijns, Gilbert, Lehnert and Tourani-Rad (2013). keywords: CEO, risk aversion, overconfidence ∗University of Sydney Business School, NSW, Australia. ∗∗Corresponding author email [email protected].
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