In a recently published study in the Journal of Banking and Finance, Busra Agcayazi, Ph.D., assistant professor in the department of finance and international business at Howard University, offers new insight into how international experiences at the executive level influence firm behavior and performance during global expansion.  

Published in the Journal of Banking and Finance, the study — titled “CEO International Background and Cross-Border M&As” — examines the role of a CEO’s international experience in shaping the success of cross-border mergers and acquisitions (M&As).   

“Firms are increasingly competing across borders, and executive leadership must be equipped to understand and navigate complex international environments,” said Agcayazi. “We sought to examine whether that preparation shows up in the data — and we found strong evidence that it does.”    

A Data-Driven Approach to Executive Decision-Making  

The study evaluated over 37,000 M&A transactions by U.S. firms between 1996 and 2018. The research team constructed a robust measure of CEO international background and linked it to firm-level data on M&A activity. The analysis revealed that companies led by CEOs with all three international characteristics were not only more likely to engage in international deals, but also realized up to 6.5% higher stock returns during the three-day window surrounding acquisition announcements. They also found that firms led by internationally experi

These effects were especially pronounced in deals involving CEOs who had shorter tenures and multiple dimensions of international experience. The research also revealed that these CEOs often negotiate better deal terms, paying lower premiums and mitigating risks when using stock instead of cash. That financial prudence, the study suggests, stems from their deeper understanding of global markets and business customs.   

This study contributes to an emerging body of literature that connects executive background to firm strategy. What sets this work apart is its focus on how personal international experience — not just firm-level characteristics — can influence the success of complex global transactions.  

Reframing Leadership in a Global Context  

The findings prompt important questions about how firms think about leadership, global readiness, and strategic talent acquisition. In particular, the study suggests that organizations contemplating international expansion may benefit from appointing leaders whose lived experiences align with the demands of operating across borders.  

The authors also consider the dual role of informational advantage and potential bias. While international experience generally improves firm performance in global deals, the study found no evidence that CEOs performed better when acquiring firms in countries specifically aligned with their own personal background. This nuance suggests that while global exposure enhances executive perspective, familiarity bias — when unchecked — may not yield the same returns.  

In this way, the research speaks to larger conversations about diversity, leadership development, and inclusive approaches to strategy. “There is growing recognition that diversity in leadership — across nationality, culture, and lived experience — can create a tangible strategic advantage,” Agcayazi noted. “This study adds empirical evidence to support that claim, especially in a global business environment.”  

For students, scholars, and practitioners alike, the study provides timely and evidence-based insights into how global experience shapes decision-making at the highest levels of business and offers a framework for understanding how leadership grounded in global perspective can drive sustainable and inclusive growth.  

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