IMPACTS OF ATTRIBUTES OF CEOS & DEVELOPERS ON WINNER �S CURSE: A SINGAPORE �S PERSPECTIVE

Abstract

This research paper aims to close the gaps between attributes of CEOs and developers to the magnitudes of winner’s curse incurred by developers. The research consists of 209 GLS transactions in Singapore from 2008 to 2019. In addition, attributes of CEOs are obtained upon identifying the CEOs of the respective developers. Also, annual reports of developers were obtained to compute the ROA of these winners. The results have shown age of CEOs, CEOs with BA / BS degrees and developer’s ROA to be statistically significant to magnitudes of winner’s curse. Firstly, age of CEOs is positively related to winner’s curse. Next, CEOs with no formal education are found to have incurred greater magnitudes of winner’s curse and CEOs with BA degrees seem to incur lower magnitudes of winner’s curse as compared to CEOs with BS degrees. Lastly, ROA appears to be positively associated with magnitudes of winner’s curse. However, the independent variables appear to be statistically insignificant and future research could be conducted to explore the possible relationships between attributes of firms and CEOs to magnitudes of winner’s curse. In addition, auctions other than first-price sealed auctions such open English auctions could be considered for future studies.