Acquirer performance when founders remain in the firm

Yamin Xie

Research output: Contribution to journalArticleScientificpeer-review

6 Citations (Scopus)


This study explores the impact of founders on acquirers’ merger performance. The results show that the acquisition of founding firms has a relatively negative impact on acquirers’ performance, whereas founders who remain in a firm post-merger have a relatively positive influence. Moreover, I find significant differences between the acquirers of firms where founders remain and the acquirers of firms where founders leave. The acquirers of firms in which founders remain exhibit a higher Tobin’s q and greater cumulative abnormal returns. This phenomenon is more prominent when founders remain as daily executives than when founders remain as non-daily directors. Additionally, the length of time that the founders remain with the merged firm affects the findings. Finally, I document a robust positive relationship between the remaining founders and acquirers’ value or stock returns, indicating the value of founders to acquirers.
Original languageEnglish
Peer-reviewed scientific journalPacific-Basin Finance Journal
Volume35 (2015)
Issue numberPart A
Pages (from-to)273-297
Number of pages25
Publication statusPublished - 01.2015
MoE publication typeA1 Journal article - refereed


  • 512 Business and Management


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