Men are from Mars, Women are from Venus: Director Gender and Mergers and Acquisitions
Maurice D. Levi
University of British Columbia - Sauder School of Business
University of British Columbia - Sauder School of Business; China Academy of Financial Research (CAFR)
University of Utah - Department of Finance
February 12, 2013
This paper examines the association between the presence of female corporate directors and mergers and acquisitions (M&As). Using acquisition bids initiated by S&P 1500 firms during 1997-2009, we find that each ten-percent representation of female directors on a corporate board is associated with a reduction in the number of a company’s acquisition bids by 7.6 percent. Furthermore, using over 450 acquisition bids for which we have data on bidder and target firm characteristics and their board membership, we find that each ten-percent of female directors on a bidder board is associated with a reduction in the bid premium by 15.4 percent. We discuss possible interpretations of our findings.
Number of Pages in PDF File: 53
Keywords: director gender, bid initiation, bid premium, mergers and acquisitions, overconfidence, monitors, stakeholder orientation
JEL Classification: G34, G38working papers series
Date posted: May 9, 2012 ; Last revised: February 17, 2013
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