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Does the education and experience of CEO matter? Evidence from M and As initiated by the Russian companies

Author

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  • Zagudalova, E.

    (Faculty of Economic Science, School of Finance, National Research University "Higher School of Economics", Moscow, Russia)

  • Grigorieva, S.

    (Faculty of Economic Science, School of Finance, National Research University "Higher School of Economics", Moscow, Russia)

  • Zueva, S.

    (Faculty of Economic Science, School of Finance, National Research University "Higher School of Economics", Moscow, Russia)

Abstract

This paper contributes to the present literature by examining the impact of CEO education and experience on M and A performance in Russia. The study is based on a sample of 172 M and A transactions over 2000-2021. We use the event study method to assess the performance of M and A deals and regression analysis to reveal the effects of CEO education and experience on M and A outcomes. CEO education is defined by three variables: financial or economic education; technical education; PhD or MBA status of CEO. CEO's experience is described by the variables, reflecting previous experience in M and A deals and his (her) industry experience in the target company's industry. Our results show that economic/financial education of CEO obtained during the Soviet Union has a negative impact on the performance of transactions, while technical education has a positive effect. Interesting positive results were obtained about the presence of an MBA and PhD level in the education of the CEO. Our results also show that the previous deal experience increases the deal performance, while the CEO experience in the target company's industry reduces it.

Suggested Citation

  • Zagudalova, E. & Grigorieva, S. & Zueva, S., 2024. "Does the education and experience of CEO matter? Evidence from M and As initiated by the Russian companies," Journal of the New Economic Association, New Economic Association, vol. 64(3), pages 103-127.
    • Handle: RePEc:nea:journl:y:2024:i:64:p:103-127
    DOI: 10.31737/22212264_2024_3_103-127
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    References listed on IDEAS

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    More about this item

    Keywords

    M and A deals; CEO personal characteristics; CEO education; CEO experience; event study; Russian market;
    All these keywords.

    JEL classification:

    • G4 - Financial Economics - - Behavioral Finance
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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