CEO Narcissism And The Takeover Process
The authors examine the influence of both acquirer and target CEO narcissism on the takeover process. They measure CEO narcissism using patterns of personal pronoun usage in more than 1,700 transcripts of CEO speech. Information on the private part of the takeover process is collected in Security and Exchange Commission (SEC) filings. The main findings are that Higher levels of acquirer CEO narcissism make it more likely that the buying firm initiates the deal; More narcissistic acquiring CEOs are associated with a shorter the private takeover process from the initiation of the transaction to the public announcement of the agreement; and Higher levels of target CEO narcissism are linked to higher bid premiums.