“Top Managers’ Given-Name Commonality and Firm Mergers and Acquisitions” by Dr. Guoli Chen
STRATEGY AND IB SEMINAR
Dr. Guoli Chen
Associate Professor of Strategy
This study examines the relationship between top managers’ given-name commonality and firm mergers and acquisitions (M&As). We argue that top managers with common given names internalize the positive perceptions and reactions associated with those names in their early lives, develop strong core selfevaluations, and subsequently are more inclined to make bolder strategic decisions such as M&As. Thus, firms with a high percentage of top managers with common given names will undertake intensive M&A activities. Furthermore, the relationship between M&As and subsequent firm performance is positively moderated by the percentage of top managers with common given names, because managers with strong core self-evaluations are less likely to seek social recognition through M&As. Using a sample of S&P 1,500 firms headquartered in the U.S., we find supporting evidence for our arguments.