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Research Seminar with Massimo G. Colombo
November 25, 2015 @ 12:00 am - 1:15 pm
Antecedents of target CEO departure in post-acquisitions: The leading role of founder
Abstract: Acquisitions of small high-tech firms are commonly practiced for technology and human capital sourcing. Acquired firms’ CEOs who are founders are an important asset for the acquirer to the extent that they have unique firm-specific capital and are ideally positioned to perform mobilizing and moderating actions that help successful acquisition implementation. Accordingly, we expect founder CEOs of acquired small high-tech firms to be more likely to be retained after the acquisition. This effect is stronger for younger and smaller firms. It is also stronger in situations where non-founder CEOs generally are not retained, as it happens for related acquisitions and when the acquired firm is integrated in the acquiring firm’s organization. In the empirical section of the paper we test these hypotheses on a large sample of acquisitions of small high-tech firms made by large firms between 2001 and 2005. The result indicates that the presence of a founder CEO decreases the probability of CEO departure after the acquisition and that the decrease is larger when the acquired firm operates in a related industry, is absorbed after the acquisition, and is younger. Conversely, size does not have the expected moderating effect.
Bio in brief:Massimo G. Colombo is Full Professor of Economics of Technical Change at Politecnico di Milano, where he is the dean of the Doctoral Program in Management, Economics and Industrial Engineering.
The scientific activity of Massimo G. Colombo is mainly in Economics of Innovation, Entrepreneurship and Strategic Management. Massimo G. Colombo has participated in numerous research projects, promoted by the European Commisison, the Italian CNR (National Research Council), the Italian Ministry of Research (MIUR), and various private and public institutions. In particular, he was one of the coordinator of the Prospective Dossier n. 2 “Globalisation of Economy and Technology”, Fast-Monitor project, EC-DG XII; was a member of the Steering Committee of the study contract on “Mergers and acquisitions and science and technology policy”, EC-DG Research, was the chairman of the steering committee of the FP6 PICO research project on “Academic entrepreneurship from knowledge creation to knowledge diffusion”, and was the scientific coordinator of the FP7 VICO research project on “Financing entrepreneurial ventures in Europe: Impact on innovation, employment growth, and competitiveness”. He coordinated the CNR Research Project on “The determinants of the post-entry performances of new firms in ICT industries” and the MIUR National Research Project on “New technologies and entrepreneurship”. He has conducted consultancy work for governmental departments and international institutions. In 2007 he has been member of the EC expert group on “Entrepreneurship in higher education institutions”. Massimo G. Colombo is author (or co-author) of nine books and more than 60 international publications. In particular, he published in journals such as the Cambridge Journal of Economics, Economics Letters, Industrial and Corporate Change, the International Journal of Industrial Organization, the Journal of Business Venturing, the Journal of Economics and Management Strategy, the Journal of Economic Behavior and Organization, the Journal of Banking and Finance, the Journal of Industrial Economics, Research Policy, Small Business Economics, the Strategic Management Journal, and others.