COMPANIES: TOO MUCH TESTOSTERONE MAKES CEO REFUSE GOOD DEALS DIRECTORS MORE OFTEN REFUSE MERS AND ACQUISITIONS
– ROME, SEPTEMBER 8 – Too much testosterone can be bad for business. According to research by the University of British Columbia, published in the journal 'Management Science', young male CEOs, who therefore have more testosterone than their older colleagues, are also the ones more likely to argue or resist a merger or acquisition of other companies, even when this may be convenient. "Testosterone - explains Maurice Levi, one of the researchers who analyzed 350 mergers and acquisitions in the US between 1997 and 2007 - is a hormone associated with the pursuit of male dominance in competitive situations, and can be a negative factor in having to make decisions of great interest. Indeed, we found a strong link between young male CEOs and retraction rate from initiated mergers and acquisitions. Young ads with higher levels of testosterone tend to reject offers even when it goes against their interest”. These people are 20% more likely to backtrack on a merger or takeover offer from senior colleagues, and 4% more likely to 'flex their managerial muscles' and try to acquire other companies. Similarly, when companies run by a young director are the target of a merger or acquisition, there is a 2% more likely that they will resist, prompting the offeror to carry out a hostile takeover and thus bypassing ' the leadership of the company.
The news of Ansa Salute – 08/09/2010
