Minnick, Kristina; Unal, Haluk; Yang, Liu - In: Review of Financial Studies 24 (2011) 2, pp. 439-472
We examine how managerial incentives affect acquisition decisions in the banking industry. We find that higher pay-for-performance sensitivity (PPS) leads to value-enhancing acquisitions. Banks whose CEOs have higher PPS have significantly better abnormal stock returns around the time of the...