What effect does CEO power and governance have over acquisitions?

Derek Oler, Bradley Olson, Christopher J. Skousen

Research output: Contribution to journalArticlepeer-review


We examine whether governance and CEO power matter for acquisitions. Acquisitions are frequently beneficial to the CEO of the acquiring firm, but can often be value-destructive to acquirer shareholders and other stakeholders such as employees. We find that corporate governance does not appear to influence whether a firm will become an acquirer after controlling for CEO power, but superior governance is associated with greater relatedness between the target and acquirer. We also find that the effect of CEO power on a firm's acquisition activity varies according to the source of that power. Our results suggest that the relationships between governance, CEO power, and acquisition activity are complex.

Original languageEnglish
Pages (from-to)45-52
Number of pages8
JournalCorporate Board: Role, Duties and Composition
Issue number3
StatePublished - 2009


  • Acquisitions
  • CEO power
  • Corporate governance
  • Diversification


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