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Cambridge Endowment for Research in Finance (CERF)


Bang Dang Nguyen

Title of research: Social Networks, Risk Taking, and Firm Value:  Evidence from Corporate Control Activities

This project investigates the impact of social ties between the Chief Executive Officer (CEO) and board members on corporate risk-taking in mergers and acquisitions (M&As) and on shareholder value. Using a measure of CEO-director connections in a large sample of U.S. firms from 2000 to 2011, we study whether boardroom connections lower firm acquisitiveness. We investigate if connected CEOs are likely to choose focus and value-creating acquisitions, and to pursue smaller M&A deals and pay in stock. We also study if CEO-board connections enhance firm value in M&As by analyzing announcement returns, premium paid, and deal completion time.

SSRN Author Page

Research Update - Report March 2016

Research Update - Report August 2015

Research Update - Report April 2015

Research Update - Report 2014

Latest news

PhD advisor and co-author of CERF post-doc Xinyu Hou wins Nobel Prize in Economics

11 October 2022

Philip H Dybvig from Washington University is (joint with Bernanke and Diamond) a recipient of this year’s Nobel Memorial Prize in Economic Sciences for his research on banks and financial crises. Prof. Dybvig is the former PhD advisor of Dr Xinyu Hou who is currently a post-doctoral researcher at the Cambridge Endowment...