Which board characteristics matter in acquisitions?

We study 477 randomly-selected acquisitions from the period of 1998 to 2009. We investigated the effect of corporate governance on the acquirer firm performance by documenting the short run cumulative abnormal returns during the respective period of acquisition announcements, and determining the...

Full description

Saved in:
Bibliographic Details
Main Authors: Bay, Maurice Min Long, Chew, Terence Wei Xin, Kwan, Sik Hin
Other Authors: Nanyang Business School
Format: Final Year Project
Language:English
Published: 2011
Subjects:
Online Access:http://hdl.handle.net/10356/43974
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Nanyang Technological University
Language: English
Description
Summary:We study 477 randomly-selected acquisitions from the period of 1998 to 2009. We investigated the effect of corporate governance on the acquirer firm performance by documenting the short run cumulative abnormal returns during the respective period of acquisition announcements, and determining the various board characteristics that contribute to the abnormal returns. Regression results show a statistical significance for the following variables: i) presence of financial directors on the board; ii) the social ties between CEO and independent directors of the board; iii) the independent director‟s talent; iv) the gender composition of the board, v) the independent director‟s experience and vi) the distractions faced in their role. Keywords: acquisitions, corporate governance, firm performance, abnormal returns