Maurice Levi, Kai Li andFeng Zhang from University of British Columbia published an article in Management Science arguing that hormone levels of young male CEOs are influencing their business decisions. Young male CEOs appear to be combative: they are 4% more likelyto be acquisitive and, having initiated an acquisition, theyare over 20% more likely to withdraw an offer. Furthermore,a young target male CEO is 2% more likely to force a bidderto resort to a tender offer. The authors argue that this combative natureis a result of testosterone levels that are higher in youngmales. Testosterone, a hormone associated with male dominanceseeking, has been shown to influence prospects for a cooperativeoutcome of the ultimatum game. Specifically, high-testosteroneresponders tend to reject low offers even though this is againsttheir interest. It has been argued that this is consistent witha low offer being seen as dominance seeking. The acts of attemptingor resisting an acquisition can be viewed as striving to achievedominance. Authors argue that the evidence reported in the paperis consistent with the presence of a significant hormone effectin mergers and acquisitions.o
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