, target shareholders receive lower takeover premia while acquirer shareholders capture additional rents from target …In acquisitions, target CEOs face a moral hazard: any personal gain from the deal could be offset by the loss of the … of their acquisition-induced lost compensation. We examine 851 acquisitions from 1999-2007, finding that more important …

&A decisions. This study runs statistical regressions on the likelihood of a merger, whether the deal is diversifying, how much … variable of interest and including controls for firm characteristics, merger characteristics, industry, and year. This paper …, those acquisitions are nondiversifying, relatively smaller deals, and are paid using a greater portion of stock. The …

the effects of mergers and acquisitions (M&A) on CEO compensation during 1993-2006, a period of intense M&A activity. We …-financed acquisitions. The level of M&A activity ceteris paribus has a significant and positive effect on CEOs' equity-based compensation … strong recent performance of their firm's stock to pursue stock-financed acquisitions that also positively impact their …

This paper examines the mechanisms by which acquirer CEOs are incentivized and their impact on merger decisions. We … argue that the pre-merger structure of CEO wealth impacts a CEO's risk tolerance and ultimately her willingness to undertake … a merger as well as the framework of the deal. As the riskiness of CEO wealth increases (as measured by excess vega or …

-term underperformance, and (vii) reward their top managers of with large compensation increases subsequent to mergers …