Do acquirer boards influence M&A value creation? Evidence from European takeovers
dc.contributor.author | Defrancq, Corneel | |
dc.contributor.author | Huyghebaert, Nancy | |
dc.contributor.author | Luypaert, Mathieu | |
dc.date.accessioned | 2019-01-14T14:14:14Z | |
dc.date.available | 2019-01-14T14:14:14Z | |
dc.date.issued | 2017 | |
dc.identifier.uri | http://hdl.handle.net/20.500.12127/6086 | |
dc.description.abstract | We examine how the size and composition of acquirer boards relate to shareholder announcement returns for a sample of 3,289 M&As initiated by European listed firms. We find that board size has an U-shaped relation with M&A announcement returns in Continental Europe. Also, acquirer shareholders in Continental Europe realize significantly larger abnormal returns if boards have a larger fraction of independent and busy directors. Next, our findings question the recent call for more diversity in board composition by the public and by regulation-shaping bodies, at least in the context of M&As. While gender and age diversity prove irrelevant, we show that the proportion of foreign directors is significantly negatively associated with value creation in domestic takeovers. In the case of cross-border M&As, we find no positive effect either. Finally, and contrary to expectations, we detect a significant negative impact of director expertise in the target industry on acquirer shareholder value in industry-diversifying takeovers outside Continental Europe. | |
dc.language.iso | en | |
dc.subject | M&A | |
dc.subject | European Takeovers | |
dc.title | Do acquirer boards influence M&A value creation? Evidence from European takeovers | |
vlerick.conferencedate | 07/04/2017-09/04/2017 | |
vlerick.conferencelocation | Lemesos, Cyprus | |
vlerick.conferencename | Spring 2017 Conference of the Multinational Finance Society | |
vlerick.knowledgedomain | Accounting & Finance | |
vlerick.typeconfpres | Conference Presentation | |
vlerick.vlerickdepartment | A&F | |
dc.identifier.vperid | 134252 | |
dc.identifier.vperid | 132517 |