Skip to main content
SpringerLink
Log in

The relationship between four personal characteristics of chief executive officers (CEOS) and company merger and acquisition activity (MAA)

  • Full Articles
  • Published:
Journal of Business and Psychology Aims and scope Submit manuscript

Abstract

This study examines the role that four CEO personal characteristics play in encouraging companies to engage in MAA. Weak to moderate support was found for hypotheses suggesting that high levels of CEO beliefs that “bigger is better,” beliefs in synergy, need for power and self-confidence are significantly related to high levels of MAA. CEO personal characteristics were measured using three methods—content analysis of speeches, questionnaires, and length of CEO biographies. Subgroup analyses were conducted to determine the possible impact that CEO tenure, company size and company age may have on the relationships between CEO personal characteristics and MAA.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Adams, W., & Brock, J. W. (1986).The bigness complex. New York: Pantheon Books.

    Google Scholar 

  • Barnes, J. H. (1984). Cognitive biases and their impact on strategic planning.Strategic Management Journal, 5, 129–137.

    Google Scholar 

  • Bazerman, M. H. (1984).Judgement in managerial decision making. New York: Wiley.

    Google Scholar 

  • Berglas, S. (1986).The success syndrome. New York: Plenum Press.

    Google Scholar 

  • Bettman, J. R., & Weitz, B. A. (1983). Attributions in the board room: Causal reasoning in corporate annual reports.Administrative Science Quarterly, 28, 165–183.

    Google Scholar 

  • Bowman, E. H. (1984). Content analysis of annual reports for corporate strategy and risk.Interfaces, 14, 61–71.

    Google Scholar 

  • Bradley, F. M. (1984). Effects of cognitive style, attitude toward growth, and motivation on the internationalization of the firm. In J. N. Sheth (Ed.),Research in Marketing (Vol. 7, pp. 237–260). Greenwich, CT: JAI Press.

    Google Scholar 

  • Byrne, J. A. (1987, October 12). Nobody ever throws fruit at the speechwriter.Business Week, pp. 112–113, 116.

  • Byron, C. (1990, January 29). Daddy dearest.New York Magazine, pp. 16–17.

  • CEO's hand in acquisitions. (1986).Mergers and Acquisitions, 20 (4), 7–8.

  • Davidson, K. M. (1981). Looking at the strategic impact of mergers.Journal of Business Strategy, 2 (1), 13–22.

    Google Scholar 

  • Davis, M. S. (1985, December 9). Two plus two doesn't equal five.Fortune, pp. 171–179.

  • Do mergers really work? (1985, June 3).Business Week, pp. 88–100.

  • Donley, R. E., & Winter, D. G. (1970). Measuring the motives of public officials at a distance: An exploratory study of American presidents.Behavioral Science, 15, 227–236.

    Google Scholar 

  • Dreher, G. F., & Mai-Dalton, R. R. (1983). A note on the internal consistency of the Manifest Needs Questionnaire.Journal of Applied Psychology, 68, 194–196.

    Google Scholar 

  • Duhaime, I. M., & Schwenk, C. R. (1985). Conjectures on cognitive simplification in acquisition and divestment decision making.Academy of Management Review, 10, 287–295.

    Google Scholar 

  • Dumaine, B. (1992, April 20). Is big still good?Fortune, pp. 50–53, 56, 60.

  • Finn, D. (1986, May 26). Exorcise the executive ghostwriters.Fortune, pp. 159–161.

  • Gaedeke, R. M., & Tootelian, D. H. (1976). The Fortune ‘500’ list—An endangered species for academic research.Journal of Business, 4, 283–288.

    Google Scholar 

  • Gilson, R. J., Scholes, M. S., & Wolfson, M. A. (1988). Taxation and the dynamics of corporate control: The uncertain case for tax-motivated acquisitions. In J. C. Coffee, L. Lowenstein & S. Rose-Ackerman (Eds.),Knights, raiders, and targets (pp. 271–299). New York: Oxford University Press.

    Google Scholar 

  • Goldberg, W. (1983).Mergers: Motives, modes and methods. New York: Nichols Publishing Co.

    Google Scholar 

  • Hall, T. (1984, October 1). For a company chief, when there's a whim there's often a way.The Wall Street Journal, p. 1.

  • Hartley, R. F. (1991).Management mistakes and successes. New York: John Wiley.

    Google Scholar 

  • Haugen, R. A., & Langetieg, T. C. (1975). An empirical test for synergism in merger.Journal of Finance, 3, 1003–1014.

    Google Scholar 

  • Hermann, M. G. (1980a). Assessing the personalities of Soviet Politburo members.Personality and Social Psychology Bulletin, 6, 332–352.

    Google Scholar 

  • Hermann, M. G. (1980b). Explaining foreign policy behavior using the personal characteristics of political leaders.International Studies Quarterly, 24, 7–46.

    Google Scholar 

  • Hermann, M. G. (1987).Handbook for assessing personal characteristics and foreign policy orientations of political leaders. Mershon Center, Ohio State University.

  • Hitt, M. A., Ireland, R. D., & Palia, K. A. (1982). Industrial firms' grand strategy and functional importance: Moderating effects of technology and uncertainty.Academy of Management Journal, 25, 265–298.

    Google Scholar 

  • Is your company too big? (1989, March 27).Business Week, pp. 84–94.

  • Jonas, H. S., Fry, R. E., & Srivastva, S. (1990). The office of the CEO: Understanding the executive experience.Academy of Management Executive, 4 (3), 36–48.

    Google Scholar 

  • Kanter, R. M. (1989).When giants learn to dance. New York: Touchstone.

    Google Scholar 

  • Kaplan, R. E. (1991).Beyond ambition. San Francisco: Jossey-Bass.

    Google Scholar 

  • Kets de Vries, M. F. R. (1991). Introduction: Exploding the myth that organizations and executives are rational. In M. F. R. Kets de Vries & Associates,Organizations on the couch: Clinical perspectives on organizational behavior and change (pp. 1–24). San Francisco: Jossey-Bass.

    Google Scholar 

  • Kets de Vries, M. F. R., & Miller, D. (1984).The neurotic organization. San Francisco: Jossey-Bass.

    Google Scholar 

  • Kets de Vries, M. F. R., & Miller, D. (1987).Unstable at the top: Inside the troubled organization. New York: NAL Penguin.

    Google Scholar 

  • Kirkpatrick, S. A., & Locke, E. A. (1991). Leadership: Do traits matter?Academy of Management Executive, 5, 48–60.

    Google Scholar 

  • Kofodimos, J. (1990). Using biographic methods to understand managerial style and character.Journal of Applied Behavioral Science, 26, 433–460.

    Google Scholar 

  • Lamb, R. B. (1987).Running American business. New York: Basic Books.

    Google Scholar 

  • Langer, E. J. (1983).The psychology of control. Beverly Hills, CA: Sage.

    Google Scholar 

  • Lapierre, L. (1991). Exploring the dynamics of leadership. In M. F. R. Kets de Vries & Associates,Organizations on the couch: Clinical perspectives on organizational behavior and change (pp. 69–96). San Francisco: Jossey-Bass.

    Google Scholar 

  • Levinson, H., & Rosenthal, S. (1984).CEO: Corporate leadership in action. New York: Basic Books.

    Google Scholar 

  • Lipman, J. (1986, May 9). Ad agencies feverishly ride a merger wave.The Wall Street Journal, p. 6.

  • Lohr, S. (1989, May 8). Synergy, redefined, back in style.The New York Times, p. D3.

  • Loomis, C. J. (1990, June 18). The biggest looniest deal ever.Fortune, pp. 48–72.

  • Lubatkin, M. (1983). Mergers and the performance of the acquiring firm.Academy of Management Review, 8, 218–225.

    Google Scholar 

  • Lubatkin, M., & O'Neill, H. M. (1987). Merger strategies and capital market risk.Academy of Management Journal, 30, 665–684.

    Google Scholar 

  • Maccoby, M. (1976, December). The corporate climber has to find his heart.Fortune, pp. 98–108.

  • Marks, M. L., & Mirvis, P. (1985). Merger syndrome: Stress and uncertainty.Mergers and Acquisitions, 20 (2), 50–55.

    Google Scholar 

  • Mason, R. O., & Mitroff, I. I. (1981).Challenging strategic planning assumptions: Concepts, methods, and techniques. New York: Wiley.

    Google Scholar 

  • McClelland, D. C. (1975).Power: The inner experience. New York: Irvington Publishers.

    Google Scholar 

  • McClelland, D. C. (1984).Motives, personality, and society. New York: Praeger.

    Google Scholar 

  • McManus, M. L., & Hergert, M. L. (1988).Surviving merger and acquisition. Glenview, IL: Scott, Foresman & Co.

    Google Scholar 

  • Meyers, W. H. (1988, June 12). Murdoch's global power play.The New York Times Magazine (Business World), pp. 19–21, 36, 41–42.

  • Miller, D., & Droge, C. (1986). Psychological and traditional determinants of structure.Administrative Science Quarterly, 31, 539–560.

    Google Scholar 

  • Miller, D., Kets de Vries, M. F. R., & Toulouse, J. M. (1982). Top executive locus of control and its relationship to strategy-making, structure and environment.Academy of Management Journal, 25, 237–253.

    Google Scholar 

  • Miner, J. B. (1977).Miner sentence completion scale. Atlanta, GA: Organizational Measurement Systems Press.

    Google Scholar 

  • Miner, J. B. (1980).Theories of organizational behavior. Hinsdale, IL: Dryden Press.

    Google Scholar 

  • Mitroff, I. I., & Pauchant, T. (1990).We're so big and powerful nothing bad can happen to us. New York: Carol Publishing.

    Google Scholar 

  • Oxandale, R. E. (1987). The impact of the legal environment on corporate mergers and acquisitions.Dissertation Abstracts International, 48/02A, 435. (University Microfilms No. MBQ87-11256).

  • Peters, T. J., & Waterman, R. H. (1982).In search of excellence. New York: Warner Books.

    Google Scholar 

  • Rhoades, S. A. (1983).Power, empire building, and merger. Lexington, MA: D. C. Heath & Co.

    Google Scholar 

  • Rotter, J. B. (1966). Generalized expectancies for internal versus external control of reinforcement.Psychological Monographs, 80, 609.

    Google Scholar 

  • Salancik, G. R., & Meindl, J. R. (1984). Corporate attributions as strategic illusions of management control.Administrative Science Quarterly, 29, 238–254.

    Google Scholar 

  • Scherschel, P. L. (1986, November 24). The empire builders take over.U. S. News & World Report, pp. 49–50.

  • Schneider, S. C., & Dunbar, R. L. M. (1992). A psychoanalytic reading of hostile takeover events.Academy of Management Review, 17, 537–567.

    Google Scholar 

  • Schuman, H., & Johnson, M. P. (1976). Attitudes and behavior. In A. Inkeles, J. Coleman & N. Smelser (Eds.),Annual Review of Sociology (pp. 161–207). Palo Alto: Annual Reviews, Inc.

    Google Scholar 

  • Schwenk, C. R. (1984). Cognitive simplification processes in strategic decision-making.Strategic Management Journal, 111–128.

  • Simonton, D, K. (1988). Presidential style: Personality, biography and performance.Journal of Personality and Social Psychology, 55, 928–936.

    Google Scholar 

  • Stahl, M. J. (1989).Strategic executive decisions. New York: Quorum Books.

    Google Scholar 

  • Staw, B M., McKechnie, P. I., & Puffer, S. M. (1983). The justification of organizational performance.Administrative Science Quarterly, 28, 582–600.

    Google Scholar 

  • Stringer, R. A. (1986).Strategy traps and how to avoid them. Lexington, MA: D. C. Heath.

    Google Scholar 

  • Suedfeld, P., & Rank, A. D. (1976). Revolutionary leaders: Long-term success as a function of changes in conceptual complexity.Journal of Personality and Social Psychology, 34, 169–178.

    Google Scholar 

  • Uleman, J. S. (1972). The need for influence: The development and validation of a measure and comparison with need for power.Genetic Psychology Monographs, 8, 157–214.

    Google Scholar 

  • Walsh, J. P. (1988). Top management turnover following mergers and acquisitions.Strategic Management Journal, 9, 173–183.

    Google Scholar 

  • Webb, E. J., Campbell, D. T., Schwarz, R. D., & Sechrest, L. (1966).Unobtrusive measures. Chicago: Rand McNally.

    Google Scholar 

  • Weinstein, N. D. (1980). Unrealistic optimism about future life events.Journal of Personality and Social Psychology, 39, 806–820.

    Google Scholar 

  • Whetten, D. A. (1980). Organizational decline: A neglected topic in organizational science.Academy of Management Review, 5, 577–588.

    Google Scholar 

  • Winter, D. G. (1987). Enhancement of an enemy's power motivation as a dynamic of conflict escalation.Journal of Personality and Social Psychology, 52, 41–46.

    Google Scholar 

  • Winter, D. G. (1991). Measuring personality at a distance: Development of an integrated system for scoring motives in running text. In A. J. Stewart, J. M. Healy, Jr. & D. J. Ozer (Eds.),Perspectives in personality: Approaches to understanding lives. (Vol. 3B, pp. 59–89). London: Jessica Kingsley Publishers.

    Google Scholar 

  • Winter, D. G., & Carlson, L. A. (1988). Using motive scores in the psychobiographical study of an individual: The case of Richard Nixon.Journal of Personality, 56, 75–104.

    Google Scholar 

  • Winter, D. G., & Stewart, A. J. (1977). Content analysis as a technique for assessing political leaders. In M. G. Hermann (Ed.),A psychological examination of political leaders (pp. 28–61). New York: Free Press.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Management and Marketing Department, School of Business, Manhattan College, Manhattan College Parkway, 10471, Riverdale, NY

    Janet L. Rovenpor

Authors
  1. Janet L. Rovenpor
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Rovenpor, J.L. The relationship between four personal characteristics of chief executive officers (CEOS) and company merger and acquisition activity (MAA). J Bus Psychol 8, 27–55 (1993). https://doi.org/10.1007/BF02230392

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF02230392

Keywords

Search

Navigation