Abstract

http://ssrn.com/abstract=2054709
 
 

References (37)



 
 

Citations (11)



 


 



Director Gender and Mergers and Acquisitions


Maurice D. Levi


University of British Columbia (UBC) - Sauder School of Business

Kai Li


University of British Columbia (UBC) - Sauder School of Business; China Academy of Financial Research (CAFR)

Feng Zhang


University of Utah - Department of Finance

October 2013


Abstract:     
Does director gender influence CEO empire building? Does it affect the bid premium paid for target firms? Less overconfident female directors less overestimate merger gains. As a result, firms with female directors are less likely to make acquisitions and if they do, pay lower bid premia. Using acquisition bids by S&P 1500 companies during 1997-2009 we find that each additional female director is associated with 7.6 percent fewer bids, and each additional female director on a bidder board reduces the bid premium paid by 15.4 percent. Our findings support the notion that female directors help create shareholder value through their influence on acquisition decisions. We also discuss other possible interpretations of our findings.

Number of Pages in PDF File: 44

Keywords: director gender, bid initiation, bid premium, mergers and acquisitions, overconfidence, risk aversion

JEL Classification: G34, G38

working papers series


Download This Paper

Date posted: May 9, 2012 ; Last revised: November 8, 2013

Suggested Citation

Levi, Maurice D. and Li, Kai and Zhang, Feng, Director Gender and Mergers and Acquisitions (October 2013). Available at SSRN: http://ssrn.com/abstract=2054709 or http://dx.doi.org/10.2139/ssrn.2054709

Contact Information

Maurice David Levi
University of British Columbia (UBC) - Sauder School of Business ( email )
2053 Main Mall
Henry Angus 865
Vancouver BC V6T 1Z2
Canada
604-822-8260 (Phone)
604-822-8521 (Fax)
Kai Li (Contact Author)
University of British Columbia (UBC) - Sauder School of Business ( email )
2053 Main Mall
Vancouver, BC V6T 1Z2
Canada
604-822-8353 (Phone)
604-822-4695 (Fax)
HOME PAGE: http://finance.sauder.ubc.ca/~kaili
China Academy of Financial Research (CAFR)
1954 Huashan Road
Shanghai P.R.China, 200030
China

Feng Zhang
University of Utah - Department of Finance ( email )
David Eccles School of Business
Salt Lake City, UT 84112-9303
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,241
Downloads: 260
Download Rank: 64,087
References:  37
Citations:  11

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.453 seconds