Female Chief Executive Officers and Cross-Border Mergers and Acquisitions

Abstract

The surge in Cross-Border Mergers & Acquisitions (CBMAs) has paralleled the advancements in global technology, providing opportunities for seamless information exchange. As the landscape of Chief Executive Officers (CEOs) evolves, literature has taken further interest in CEO gender. Drawing upon data from WRDS Compustat, Execucomp, and SDC Thomson Platinum spanning thirty-one years, our study analyzes the relationship between United States CEOs and CBMAs. The objective of our research is to discover the relationship between CEO gender on CBMA interactions. Employing a comprehensive set of CEO, firm, and deal-level controls, we present significant findings. Our analyses indicate female CEOs are less likely to engage in CBMAs, while using more stock as a method of payment, aligning with financial and behavioral literature of female CEOs being inherently more risk averse. Our results display there is no statistically significant relationships between female CEOs, acquisition premium, and deal size. This study provides further analyses on the unique decision-making tendencies of CEOs based on gender and gender behaviors, providing valuable results on the patterns influencing their decisions and consequences