CEOs Appear to Have Little Faith in Their own Companies’ Acquisitions !

December 10, 2013

Business Fact 
CEOs Appear to Have Little Faith in Their own  Companies’ Acquisitions !! 

Reasearch Data : 
CEOs are 23.5% more likely to sell shares of their companies’ stock shortly after announcing acquisitions of other firms, a finding that suggests the executives have little faith in the value of the acquisitions,“It wouldn’t make much sense” for CEOs to sell stock “if they TRULY felt that the company’s stock was going to appreciate,” Devers says of her research, which analyzed data involving more than 2,000 publicly traded firms over a 12-year period.

Research Conducted by:   a team led by Cynthia Devers of Michigan State University. 
SOURCE: CEOs lack belief in their own corporate acquisitions, study suggests