Artikel Jurnal

The role of CEO integrity in M&A decision-making

While the influence of CEO characteristics on M&A decisions has long spurred researchers’ interest, little attention has been devoted to the ramifications of CEO integrity—the adherence to generally accepted norms and standards. We investigate how CEO integrity influences different stages of the M&A decision process. Specifically, we argue that while CEO integrity reduces self-serving behavior, it may also become a golden cage that constrains CEOs’ latitude of action. Accordingly, we find that CEO integrity decreases the probability of Type I errors (errors of commission) but increases the probability of Type II errors (errors of omission) in M&A decision-making. We contribute to theory development by putting forward CEO integrity as an important personality construct for upper echelons research to build on and extend further.

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