IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v88y2023icp861-873.html
   My bibliography  Save this article

Does managerial ability drive frequent acquisitions? The role of strategic agency, firm innovativeness, and environmental uncertainty

Author

Listed:
  • Mishra, Chandra S.

Abstract

The strategic agency hypothesis in emerging behavioral theory of the firm suggests that high ability managers have strategic foresight to search distant regions to sense and seize innovative opportunities. Conventional behavioral theory based suggests that managers conduct myopic searches to discover growth opportunities. We test the strategic agency hypothesis in that we investigate the association between strategic managerial ability and the firm's propensity for frequent acquisition using a sample of 5496 firm-year observations over the 2000–2016 period. We find that high strategic ability managers are more likely to pursue frequent acquisitions when the acquirer is innovative and operates in a risky environment. Our results are consistent with the strategic agency hypothesis in that managers with high strategic ability have sufficient strategic foresight to sense and seize growth opportunities via frequent acquisitions in a timely manner.

Suggested Citation

  • Mishra, Chandra S., 2023. "Does managerial ability drive frequent acquisitions? The role of strategic agency, firm innovativeness, and environmental uncertainty," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 861-873.
    • Handle: RePEc:eee:reveco:v:88:y:2023:i:c:p:861-873
    DOI: 10.1016/j.iref.2023.07.026
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056023002368
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2023.07.026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:88:y:2023:i:c:p:861-873. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.