Assistant Professor Thibaut Morillon examines the influence of CEOs with international backgrounds on the value of cross-border mergers and acquisitions.
Thibaut Morillon, assistant professor of finance at the Martha and Spencer Love School of Business, has published research indicating that CEOs with international backgrounds may enhance the success and value of cross-border mergers and acquisitions.
His co-authored study, titled “CEO International Background and Cross-Border M&As,” examines how CEOs with non-U.S. nationality, overseas education, or foreign work experience influence the frequency and outcomes of international deals.
“While it’s expected that CEOs with international backgrounds are more likely to pursue cross-border mergers and acquisitions due to their global exposure, our research indicates that these CEOs may also lead deals that are significantly more value-enhancing,” said Morillon.
Key Findings:
- Higher propensity for international deals: The research suggests that CEOs with international backgrounds may be more inclined to pursue cross-border M&As.
- Potential for enhanced value creation: These leaders are associated with deals that could be more value-enhancing, potentially counteracting common issues like overpayment that often lead to value destruction in mergers.
- Amplified impact with multiple international traits: The positive effects appear to be more pronounced when CEOs have multiple international characteristics, such as non-U.S. nationality, foreign education, and overseas work experience.
- Strategic financial advantages: The study indicates that international CEOs might pay lower acquisition premiums and could mitigate the negative impacts of financing deals with equity.
“What we found connects perfectly with the topics I teach,” Morillon shared. “Using this research in class lets me show students how these ideas work in the real world, making the concepts more tangible and easier to grasp.”
The study was published in the Journal of Banking and Finance, a top finance publication. Busra Agcayazi at Howard University and Ann Marie Hibbert at West Virginia University were co-authors.
Morillon joined Elon University in 2019 and was the recipient of the Love School of Business Dean’s Award for Excellence in Scholarship in 2022.
Morillon is a former financial advisor at LCL Bank. His scholarly interests include mergers and acquisitions, blockchain/cryptocurrencies, international finance, corporate governance, and real estate. He serves as an advisor and mentor to the Elon Blockchain Club.