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Does Managerial Experience in a Target Firm Matter for the Retention of Managers after M&As?

Author

Listed:
  • Kenjiro Hirata

    (Faculty of Economics, Kobe International University)

  • Ayako Suzuki

    (School of International Liberal Studies, Waseda University)

  • Katsuya Takii

    (Osaka School of International Public Policy (OSIPP), Osaka University)

Abstract

This paper examines how managers' tenures in target firms influence their probability of retention as board members after mergers or acquisitions in Japanese firms. It develops a model that distinguishes several hypotheses about the effect of tenure on separation. Our results suggest that experience as an employee increases firm-specific skills, but at the expense of the ability to learn new skills. However, experience as a board member does not have this effect in Japanese firms, the structure of which is known to encourage specific skills. Further, we provide a novel method to correct for selection biases when using data on managers.

Suggested Citation

  • Kenjiro Hirata & Ayako Suzuki & Katsuya Takii, 2016. "Does Managerial Experience in a Target Firm Matter for the Retention of Managers after M&As?," OSIPP Discussion Paper 16E006, Osaka School of International Public Policy, Osaka University.
    • Handle: RePEc:osp:wpaper:16e006
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    References listed on IDEAS

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    More about this item

    Keywords

    Tenure; Retention of Managers and Post M&As;

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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