Abstract : Our study demonstrates the impact of CEO ascribed and achieved social status on M&A decision making and shows the firm value consequences from acquisition deals announced by executives with various status levels. Both ascribed (measured through prestigious education) and achieved (measured through receiving awards) social status are shown to be associated with reduced M&A activity and the effect is strongest among executives who possess both status types simultaneously. However, while the influence of ascribed status is permanent, higher achieved status reduces CEO acquisitiveness only in the immediate aftermath of receiving this status boost. Furthermore, while ascribed status has no significant impact on immediate announcement returns, possessing high achieved social status results in significant value destruction around deal announcements.
