Governance mandates, outside directors, and acquirer performance

B-Tier
Journal: Journal of Corporate Finance
Year: 2019
Volume: 59
Issue: C
Pages: 218-238

Authors (4)

Dahya, Jay (not in RePEc) Golubov, Andrey (University of Toronto) Petmezas, Dimitris (Durham University) Travlos, Nickolaos G. (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We use hand-collected board data around the issuance of two distinct government-led board structure mandates in the U.K. to establish the effect of outside directors on acquirer performance. Increases in outside director representation are associated with better acquirer returns in deals involving listed targets, but not when the target is private. These results are consistent with greater outside director reputational exposure when publicity is high. While we do not advocate mandated board structures, our evidence suggests that the particular diktats we examine were associated with improved acquirer performance in public firm takeovers. We present corroborating evidence from the U.S. around a similar reform period.

Technical Details

RePEc Handle
repec:eee:corfin:v:59:y:2019:i:c:p:218-238
Journal Field
Finance
Author Count
4
Added to Database
2026-01-25