When the Target CEO Speaks: Identity Gatekeeping on Joint M&A Announcement Calls
Type
conference paper
Date Issued
2026-10-20
Author(s)
Abstract
Acquisition research has focused overwhelmingly on acquirer executives, leaving target CEOs largely understudied beyond their contractual incentives. This paper examines a visible yet overlooked behavior: target CEO participation in joint acquisition announcement calls. Drawing on organizational identification theory, we conceptualize acquisitions as identity shocks and argue that target CEOs with stronger pre-deal identification are more likely to participate and, when they speak, to adopt legacy-preservation rhetoric (emphasizing the target’s history, culture, and employees) rather than pragmatic-alignment rhetoric (emphasizing strategic fit and synergies). We further theorize how participation and framing shape investor reactions. Using a hand-curated dataset of 8,847 acquisition announcement calls from 2003 to 2024, we measure identification linguistically via the Unquestioning Affiliation Index and framing via human coding scaled with supervised machine learning. Preliminary results show identification predicts participation and legacy-preservation framing, and that legacy-preservation framing is negatively associated with investor reactions. We thus reconceptualize target CEOs as identity gatekeepers and active strategic actors.
Language
English (United States)
HSG Classification
not classified
Refereed
No
Event Title
Strategic Management Society Annual Conference
Event Location
Berlin
Event Date
17. - 20.10.2026
Subject(s)
Division(s)
Contact Email Address
di.bian@unisg.ch