CEO power and post-merger performance in the UK: the moderating effects of corporate governance mechanisms
CEO power and post-merger performance in the UK: the moderating effects of corporate governance mechanisms
This study examines the effects of Chief Executive Officer (CEO) power and the moderating role of corporate governance mechanisms on mergers and acquisitions (M&A) performance. Our results indicate that CEO power is negatively associated with post-merger performance. Further tests show that corporate governance mechanisms, namely—board size, board independence, and board gender diversity—moderate the negative effects of CEO power on M&A performance. These results imply that internal corporate governance mechanisms may be effective in curtailing CEO power but do not curb it completely. The results are robust across alternative model specifications and alternative measures of post-merger performance.
CEO power, Chief executive officer, Event study, Mergers and acquisitions
Brahma, Sanjukta
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Boateng, Agyenim
1fdce2a1-f308-4a8d-9b7a-b3e4e3d66502
Ahmad, Sardar
7ea7c013-a139-485e-985a-e64362477f93
Ag, Yusuf
57cc833f-4679-4185-8be4-f13ceb00816d
20 June 2025
Brahma, Sanjukta
2e8cb4c0-03ec-4be0-a374-cf2b3bb823ef
Boateng, Agyenim
1fdce2a1-f308-4a8d-9b7a-b3e4e3d66502
Ahmad, Sardar
7ea7c013-a139-485e-985a-e64362477f93
Ag, Yusuf
57cc833f-4679-4185-8be4-f13ceb00816d
Brahma, Sanjukta, Boateng, Agyenim, Ahmad, Sardar and Ag, Yusuf
(2025)
CEO power and post-merger performance in the UK: the moderating effects of corporate governance mechanisms.
Review of Quantitative Finance and Accounting.
(doi:10.1007/s11156-025-01432-2).
Abstract
This study examines the effects of Chief Executive Officer (CEO) power and the moderating role of corporate governance mechanisms on mergers and acquisitions (M&A) performance. Our results indicate that CEO power is negatively associated with post-merger performance. Further tests show that corporate governance mechanisms, namely—board size, board independence, and board gender diversity—moderate the negative effects of CEO power on M&A performance. These results imply that internal corporate governance mechanisms may be effective in curtailing CEO power but do not curb it completely. The results are robust across alternative model specifications and alternative measures of post-merger performance.
Text
s11156-025-01432-2
- Version of Record
More information
Accepted/In Press date: 31 May 2025
Published date: 20 June 2025
Keywords:
CEO power, Chief executive officer, Event study, Mergers and acquisitions
Identifiers
Local EPrints ID: 502858
URI: http://eprints.soton.ac.uk/id/eprint/502858
ISSN: 0924-865X
PURE UUID: f8dafca7-477a-4a67-97d1-1567bfe01ccb
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Date deposited: 10 Jul 2025 16:50
Last modified: 11 Sep 2025 03:33
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Contributors
Author:
Sanjukta Brahma
Author:
Agyenim Boateng
Author:
Sardar Ahmad
Author:
Yusuf Ag
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