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Top management retention in cross-border acquisitions: the roles of financial incentives, acquirer's commitment and autonomy

Year: 2012

Type: article

Abstract: Using data from a sample of Cross-Border Acquisitions (CBAs) made by UK firms, the present paper investigates the determinants of top management retention in CBAs. Applying both the theory of relative standing and the financial incentive mechanism of retention, we find that post-acquisition autonomy of the acquired firm and the acquirer’s commitment to the acquired organisation significantly affect top management retention. By contrast, and contrary to conventional wisdom, when interacting with other variables financial incentives may have a negative effect on top management retention. The managerial implications of the findings and directions for future research are also discussed.

Source: European J of International Management

DOI: 10.1504/ejim.2012.048158

Authors: Mohammad Faisal Ahammad, Keith W. Glaister, Yaakov Weber, Shlomo Yedidia Tarba

Institutions: Nottingham Trent University, University of Sheffield, College of Management Academic Studies, Open University of Israel

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2161496748

FWCI: 20.99

Cites: 61

Cited by: 65

Related to: 10