Why are Firms Sold? The Role of Target CEO's Age, Tenure, and Share Ownership
Speaker: Reinier Kraakman, Ezra Ripley Thayer Professor of Law at Harvard Law School, Harvard University
Location: Hilton Hotel Amsterdam, Apollolaan 138, Amsterdam
This paper investigates how the CEO manages the company by examining the relationship between CEO characteristics and the decision to sell the company. The decision to sell the company is one of the most important decisions a CEO can make. Today's market for corporate control operates almost exclusively through friendly deals, which suggests that the CEO characteristics that are associated with selling the company have importance for corporate governance practice generally. Finally, it may be possible to draw inferences about the extent to which CEO characteristics shape other major corporate decisions based on apparent relationship between these characteristics and the decision to sell the company.