November 10, 2020
Mahmoud Aidli, graduate of the maîtrise en gestion (M. Sc.) – stratégie program, brought home the award for best research paper written by an undergraduate or master’s student, discerned at the annual conference hosted by the US-Southeast Chapter of the Academy of International Business (AIB-SE).
Entitled When do firms with a new CEO engage in more M&As? Do the stock market reactions around her appointment matter?, the paper constitutes an adaptation of Mahmoud Aidli’s master’s thesis, written in collaboration with professor Marie-Ann Betschinger of HEC Montréal, Caterina Moschieri of the IE Business School, and Olivier Bertrand of the Fundação Getulio Vargas – FGV/EBAPE.
Submitted alongside the work of dozens of participants, Mahmoud Aidli’s study was one of 4 shortlisted finalists. At the conference, the graduate delivered a solo virtual presentation, followed by the unveiling of his juried award.
The AIB-SE conference is among the few international university conferences that includes a competition category for students, thereby serving to initiate them to the format and exigencies of scholarly conferences, and to enhance their experience in management research.
Mahmoud Aidli’s research examines both shareholders’ reactions and the effects on business activities when a new CEO is announced. According to this graduate’s analysis, an unfavourable response to such nominations on the part of shareholders translates into more mergers and acquisitions in the following year. In fact, this research also points out that new CEOs have a greater tendency to take risks, in order to compensate for anticipated losses in salary, job security, and of other types of benefits.
Completed in April of 2020, Mahmoud Aidli’s master’s thesis analyzed a sample of 647 newly appointed CEOs in 22 countries, from 2003 to 2015, and the activities of their businesses throughout the first 12 months of their mandates.