Managerial Narcissism, Disclosure Tone, and Post-M&A Performance: Evidence from Japan
Tracks
Crystal 1
| Tuesday, July 2, 2024 |
| 2:15 PM - 2:40 PM |
Presenter
Assoc Prof Yoshiaki Amano
Associate Professor
Kyoto University
Managerial Narcissism, Disclosure Tone, and Post-M&A Performance: Evidence from Japan
Abstract
This study examines how managerial narcissism plays a role in mergers and acquisitions (M&A). Many studies have investigated the relationship between narcissism and firm disclosure or performance; however, little evidence has been reported regarding the interplay between managerial narcissism, disclosure tone, and post-M&A performance. Using a sample of 138 M&A transactions by listed Japanese firms, this study provides weak evidence that managerial narcissism is positively related to disclosure tone in press releases through which acquiring firms announce M&A deals. Furthermore, the study shows that narcissism is positively related to short-term stock returns two days after announcements, whereas the disclosure tone shows a weak positive association with stock returns only on the announcement day. There is weak evidence that narcissism (disclosure tone) is positively (negatively) associated with long-term stock and operating performance after M&A. Even though prior literature provides scattered evidence regarding the relationship between managerial narcissism and firm disclosure or performance, this study adds new insights into the multidimensional associations between narcissism, disclosure tone, and post-M&A performance.
Biography
Yoshiaki Amano is an Associate Professor in the Finance and Accounting Program at Kyoto University. He specializes in financial accounting, with a particular focus on mergers and acquisitions (M&A). His research interests center on the relationship between firms’ accounting information and their behaviors, particularly in the context of M&A. Amano has extensively studied the factors that contribute to the success and failure of M&A deals in Japan, a topic of increasing importance as M&A activity in the country grows.
Amano graduated with a Ph.D. from the Graduate School of Economics at Kyoto University in 2021. Prior to his academic career, he gained valuable industry experience working as a management consultant at Accenture and Bain & Company. His consulting work on numerous M&A projects provided him with practical insights into the challenges firms face during these transactions. This background has significantly informed his research, allowing him to bridge the gap between theory and practice.
In 2021, Amano was appointed as a Senior Lecturer at Kyoto University, and he has since advanced to his current position as an Associate Professor in 2024. His notable publication, "Real Effects of Intangibles Capitalization—Empirical Evidence from Voluntary IFRS Adoption in Japan," was featured in the Journal of International Accounting Research in December 2020. This work reflects his ongoing commitment to exploring the impacts of accounting practices on firm performance.
Discussant
Lirong Shi
Assistant Professor
University of Nottingham Ningbo China
