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Does target firm risk differ depending on the gender of the acquiring firm's CEO?

Strandqvist, Anton LU and Sten, Malkolm (2023) NEKH02 20222
Department of Economics
Abstract (Swedish)
This study aims to examine the relationship between the gender of the CEO and target firm risk in mergers and acquisitions (M&A) in Sweden. Previous research has shown that there may be differences in risk attitudes and behavior between men and women, which could affect their decision-making processes in M&A transactions. However, little research has focused on the relationship between CEO gender and target firm risk in M&A. The study aims to answer the question: Does target firm risk differ depending on the gender of the acquiring firm's CEO? The study found that female CEOs acquire companies with lower default risk, as indicated by higher Altman Z-scores, while male CEOs acquire companies with higher solvency and cash ratios. These... (More)
This study aims to examine the relationship between the gender of the CEO and target firm risk in mergers and acquisitions (M&A) in Sweden. Previous research has shown that there may be differences in risk attitudes and behavior between men and women, which could affect their decision-making processes in M&A transactions. However, little research has focused on the relationship between CEO gender and target firm risk in M&A. The study aims to answer the question: Does target firm risk differ depending on the gender of the acquiring firm's CEO? The study found that female CEOs acquire companies with lower default risk, as indicated by higher Altman Z-scores, while male CEOs acquire companies with higher solvency and cash ratios. These conflicting results suggest that it is unclear whether female CEOs are more risk-averse than male CEOs when comparing risk-taking incentives associated with M&A transactions. The study
contributes to the existing literature by providing a new perspective on the relationship between CEO gender and target firm risk within M&A transactions. (Less)
Please use this url to cite or link to this publication:
author
Strandqvist, Anton LU and Sten, Malkolm
supervisor
organization
course
NEKH02 20222
year
type
M2 - Bachelor Degree
subject
keywords
Chief Executive Officer, Gender, Mergers and Acquisitions, Risk aversion
language
English
id
9107639
date added to LUP
2023-06-07 10:45:21
date last changed
2023-06-07 10:45:21
@misc{9107639,
  abstract     = {{This study aims to examine the relationship between the gender of the CEO and target firm risk in mergers and acquisitions (M&A) in Sweden. Previous research has shown that there may be differences in risk attitudes and behavior between men and women, which could affect their decision-making processes in M&A transactions. However, little research has focused on the relationship between CEO gender and target firm risk in M&A. The study aims to answer the question: Does target firm risk differ depending on the gender of the acquiring firm's CEO? The study found that female CEOs acquire companies with lower default risk, as indicated by higher Altman Z-scores, while male CEOs acquire companies with higher solvency and cash ratios. These conflicting results suggest that it is unclear whether female CEOs are more risk-averse than male CEOs when comparing risk-taking incentives associated with M&A transactions. The study
contributes to the existing literature by providing a new perspective on the relationship between CEO gender and target firm risk within M&A transactions.}},
  author       = {{Strandqvist, Anton and Sten, Malkolm}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Does target firm risk differ depending on the gender of the acquiring firm's CEO?}},
  year         = {{2023}},
}