Does target firm risk differ depending on the gender of the acquiring firm's CEO?

Sammanfattning: This study aims to examine the relationship between the gender of the CEO and target firm risk in mergers and acquisitions (M&A) in Sweden. Previous research has shown that there may be differences in risk attitudes and behavior between men and women, which could affect their decision-making processes in M&A transactions. However, little research has focused on the relationship between CEO gender and target firm risk in M&A. The study aims to answer the question: Does target firm risk differ depending on the gender of the acquiring firm's CEO? The study found that female CEOs acquire companies with lower default risk, as indicated by higher Altman Z-scores, while male CEOs acquire companies with higher solvency and cash ratios. These conflicting results suggest that it is unclear whether female CEOs are more risk-averse than male CEOs when comparing risk-taking incentives associated with M&A transactions. The study contributes to the existing literature by providing a new perspective on the relationship between CEO gender and target firm risk within M&A transactions.