Title: Top management retention in cross-border acquisitions: the roles of financial incentives, acquirer's commitment and autonomy

Authors: Mohammad Faisal Ahammad; Keith W. Glaister; Yaakov Weber; Shlomo Yedidia Tarba

Addresses: Division of Accounting & Finance, Nottingham Business School, Nottingham Trent University, Nottingham, UK. ' Management School, The University of Sheffield, Sheffield, UK. ' School of Business Administration, College of Management, Rishon Lezion, Israel. ' Department of Economics and Management, The Open University, Raanana, Israel

Abstract: Using data from a sample of Cross-Border Acquisitions (CBAs) made by UK firms, the present paper investigates the determinants of top management retention in CBAs. Applying both the theory of relative standing and the financial incentive mechanism of retention, we find that post-acquisition autonomy of the acquired firm and the acquirer's commitment to the acquired organisation significantly affect top management retention. By contrast, and contrary to conventional wisdom, when interacting with other variables financial incentives may have a negative effect on top management retention. The managerial implications of the findings and directions for future research are also discussed.

Keywords: top management retention; cross-border acquisitions; relative standing theory; financial incentives; autonomy; commitment; UK; United Kingdom; M&As; mergers and acquisitions.

DOI: 10.1504/EJIM.2012.048158

European Journal of International Management, 2012 Vol.6 No.4, pp.458 - 480

Published online: 22 Nov 2014 *

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