Highly Connected CEOs More Likely to Broker Mergers and Acquisitions That Harm Firms

Tomas Jandik10172014Chief executive officers with extensive social connections to board members, executives at other firms, bankers and other financial market participants initiate mergers and acquisitions more frequently and with poorer results, according to a new study by Walton College associate professor Tomas Jandik. And, when compared to deals brokered by CEOs with less-extensive contacts, these deals result in greater financial losses for both the acquiring firm and the combined entity but greater personal benefit to the well connected CEO.

Read the entire article at Arkansas Newswire.