Intersection of upper echelons and corporate governance: Ramifications for market response to acquisition announcements

Based on the intersection of upper echelons and governance literatures, this study enriches the research community's understanding of the influence of mental constructs, the propensities of powerful corporate actors, and incentives on market response to acquisition announcements. Results indicate that good experiences of corporate leaders (domain of upper echelons researchers) coupled with incentives (domain of governance researchers) are positively associated with cumulative abnormal returns (CARs). However, bad experiences coupled with incentives do not contribute to higher CARs.