Centre for European Policy Studies Brussels

In this paper, we investigate whether managerial power and experience of executives influences M&A performance and whether there is a link between M&A performance and executive compensation. The aim is to understand if any causality relationship exists among executives power, bank performanc...

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Bibliographic Details
Main Authors: Rym Ayadi, Francesca Arnaboldi
Other Authors: The Pennsylvania State University CiteSeerX Archives
Format: Text
Language:English
Subjects:
Online Access:http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.485.4799
http://www.fma.org/Prague/Papers/arnaboldi ayadi v2.pdf
Description
Summary:In this paper, we investigate whether managerial power and experience of executives influences M&A performance and whether there is a link between M&A performance and executive compensation. The aim is to understand if any causality relationship exists among executives power, bank performance and their compensation in Europe. To assess banking performance, and CEO compensation we use OLS regression model on 52 bank–to-bank M&A from EU15 countries plus Norway and Iceland. We find a positive significant relationship between managerial power and post deal bank performance.