Impression Offsetting as an Early Warning Signal of Low CEO Confidence in Acquisitions

Researchers have long been interested in understanding the motives behind CEOs’ actions. On the one hand, CEOs may pursue strategic actions because they are confident they will enhance firm value. Alternatively, CEOs may take actions even when they have low confidence in the value of those actions, perhaps driven by self-interest or social pressures. Although research suggests that CEO option exercises following an acquisition announcement are...