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Keloharju, Matti

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Keloharju

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Matti

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Keloharju, Matti

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Now showing 1 - 3 of 3
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    Initial Offer Precision and M&A Outcomes
    (2015-11-03) Hukkanen, Petri; Keloharju, Matti
    Building on recent research in social psychology, this paper analyzes the link between the precision of initial cash offers and M&A outcomes. About one-half of the offers are made at the precision of one or five dollars per share, and an additional one-third at the precision of half dollar or one quarter. The practice of making offers at round price-per-share levels is associated with the following unfavorable outcomes for the bidder: (1) higher purchase price for target shares, (2) lower probability to complete the deal, and (3) lower announcement return. A median-sized offer made at the precision of one or five dollars per share is associated with a 4−5 million dollars higher expected transaction price than one made at a precision greater than one quarter.
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    Are CEOs Born Leaders? Lessons from Traits of a Million Individuals
    (2015-11-04) Adams, Renée; Keloharju, Matti; Knüpfer, Samuli
    What makes a CEO? We merge data on the traits of more than one million Swedish males, measured at age 18 in a mandatory military enlistment test, with data on their service as a CEO of any Swedish company decades later. CEOs have higher cognitive and non-cognitive ability scores and are taller than typical members of the population. The difference in traits is larger when CEOs run bigger companies; it is smaller when they run family firms, in particular in the capacity of an heir or in a less competitive industry. Although the traits of CEOs compare favorably with the population, they are hardly exceptional: for example, the median large-company CEO belongs to the top-17% of the population in cognitive ability, and to the top-5% in the combination of cognitive, non-cognitive ability, and height. There are more than one hundred times as many men in managerial roles in the corporate sector who have better trait combinations than the median large-company CEO and who do not become a large-company CEO during our 7-year sample period. Being born with a favorable mix of traits may be necessary but is far from a sufficient condition for making it to the executive suite.
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    Equal Opportunity? Gender Gaps in CEO Appointments and Executive Pay
    (2016-02-23) Keloharju, Matti; Knüpfer, Samuli; Tåg, Joacim
    This paper uses exceptionally rich data on Swedish corporate executives and their personal characteristics to study gender gaps in CEO appointments and pay. Both gaps are sizeable: 18% for CEO appointments and 27% for pay. At most one-eight of the gaps can be attributed to observable gender differences in executives’ and their firms’ characteristics. Further tests suggest that unobservable gender differences in characteristics are unlikely to account for the remaining gaps. Instead, our results are consistent with the view that male and female executives sharing equal attributes neither have equal opportunities to reach the top, nor are they equally paid.