Introduction

[Audio] The behaviour of CEOs has been identified as a key factor in understanding and maximising the wealth effects of mergers and acquisitions. Studies have correlated CEO characteristics with their behaviour, finding that aggressive CEOs are more likely to pursue mergers, while conservative CEOs may be more successful in managing the deal. Additionally, CEO traits have also been linked to deal characteristics such as premium, size, and synergy. Therefore, understanding the impact of CEO behaviour on both the deal and on the wealth effects of mergers and acquisitions is essential in order to maximise the potential returns from such deals..

[Audio] Understanding the traits and behaviours of CEOs can have a considerable impact on the outcomes of Mergers and Acquisitions. Overconfidence and narcissism typically result in both value destruction and additional agency costs. Risk-averse behaviours and managerial hubris also play a part in producing negative M&A outcomes. Examining the interactions between these traits and determining the moderating factors that can influence the outcomes of Mergers and Acquisitions is essential. Research into this area is essential to assist in developing practical implications for corporate governance and executive selection..

[Audio] Research has uncovered numerous vital aspects that contribute to comprehending how corporate cash reserves and payment methods can have an impact on the wealth effects of mergers and acquisitions. Cash reserves can assist businesses in financing their investments without having to incur extra debt. Additionally, it can provide financial stability, letting them cover their short-term financial requirements or optimise their cash flows. Furthermore, it can reduce the cost of capital and strengthen the financing capability of companies. On the other side, having excessively large reserves of cash can eclipse its benefits, bringing about potential drawbacks. A further analysis is required to achieve an enhanced knowledge of the wealth effects of M&As and the role of cash reserves and payment methods..

[Audio] There is great importance in researching the size of firms, and there have been studies done that assess how mergers and acquisitions affect the size of companies. In 1971, Ijiri and Simon conducted an empirical study on this topic, and Wilson (1967) was the first to research the theoretical literature related to sealed-bid auctions and the knowledge asymmetry within it. Additional research on this subject is needed to understand the wealth effects of M&As, CEO behaviors and deal characteristics, and to provide further research directions..