On the Participation and Reputation of Financial Advisors in Corporate Acquisitions

Author(s):  
Jayant R. Kale ◽  
Omesh Kini ◽  
Harley E. Ryan
GIS Business ◽  
2016 ◽  
Vol 11 (5) ◽  
pp. 01-13
Author(s):  
Simon Yang

This paper examines the relative sensitivity of CEO compensation of both acquiring and acquired firms in the top 30 U.S. largest corporate acquisitions in each year for the period of 2003 to 2012. We find that total compensation and bonus granted to executive compensation for acquired companies, not acquiring companies, are significantly related to the amount of acquisition deal even after the size and firm performance are controlled for. Both acquiring and acquired CEOs are found to make the significantly higher compensation than the matched sample firms in the same industry and calendar year. We also find that executives with higher managerial power, as measured by a lower salary-based compensation mix, prior to a corporate acquisition are more likely to receive a higher executive pay in the year of acquisition. The association between executive compensation and managerial power seems to be stronger for acquired firms than for acquiring firms in corporate acquisition. Overall, our findings suggest that corporate acquisition has higher impacts on executive compensation for acquired firm CEOs than for acquiring firm CEOs.


2019 ◽  
Author(s):  
Leor M Hackel ◽  
Jeffrey Jordan Berg ◽  
Björn Lindström ◽  
David Amodio

Do habits play a role in our social impressions? To investigate the contribution of habits to the formation of social attitudes, we examined the roles of model-free and model-based reinforcement learning in social interactions—computations linked in past work to habit and planning, respectively. Participants in this study learned about novel individuals in a sequential reinforcement learning paradigm, choosing financial advisors who led them to high- or low-paying stocks. Results indicated that participants relied on both model-based and model-free learning, such that each independently predicted choice during the learning task and self-reported liking in a post-task assessment. Specifically, participants liked advisors who could provide large future rewards as well as advisors who had provided them with large rewards in the past. Moreover, participants varied in their use of model-based and model-free learning strategies, and this individual difference influenced the way in which learning related to self-reported attitudes: among participants who relied more on model-free learning, model-free social learning related more to post-task attitudes. We discuss implications for attitudes, trait impressions, and social behavior, as well as the role of habits in a memory systems model of social cognition.


2010 ◽  
Author(s):  
Maurice D. Levi ◽  
Kai Li ◽  
Feng Zhang

Author(s):  
Charles A. Barragato ◽  
Ariel J Markelevich

2006 ◽  
Author(s):  
Tyrone M. Carlin ◽  
Guy Ford ◽  
Nigel Finch

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