MANAGERIAL OWNERSHIP, THE METHOD OF PAYMENT FOR ACQUISITIONS, AND EXECUTIVE JOB RETENTION

This study investigates how acquiring and target firm managers' prefer ences for control rights motivate the payment for corporate acquisitio ns. We expect that managers of target firms who value influence in com bined firms will prefer to receive stock. One reason top managers desi re influence is to enhance their chances of retaining jobs in the comb ined firm. Our analysis shows a strong, positive association between m anagerial ownership of target firms and the likelihood of acquisitions for stock. We also find that managers of target firms are more likely to retain jobs in combined firms when they receive stock rather than cash.