Does Corporate Governance Affect M&amp;A Performance?

Liu, Jiangna; Zhao, Libin

doi:10.1007/978-3-642-27711-5_52

Cited by 2 publications

(1 citation statement)

References 8 publications

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“…To summarize, earlier research has explored the impact of CG factors on firm performance using alternate proxies of performance and governance across diverse sectors and countries (Awan et al 2020;Golubov et al 2015;Teti et al 2017;Singh and Soni 2022;Arora and Soni 2023). The relationship with several factors, including Board Size (Amar et al 2011) and CEO separation (Desai et al 2003;Awan et al 2020;Pham et al 2015;Teti et al 2017), board independence (Brewer et al 2010;Dahya et al 2016;Liu and Zhao 2012;Golubov et al 2015;Masulis et al 2007;Miletkov et al 2015), board size (Cheng et al 2008;Shekhar and Torbey 2005;Teti et al 2017;Soni and Arora 2021), and CEO compensation (Singh and Soni 2022;Agyei-Boapeah et al 2019) affect firm performance has been confirmed. However, the literature on the role of CG in influencing acquiring firms' futures is yet to be studied extensively in transition economies.…”

Section: Literature Reviewmentioning

confidence: 84%

Unveiling the Nexus: Exploring the Impact of Corporate Governance on the Financial Performance of Acquiring Companies in the Indian Context

Satapathy,

Soni,

Patjoshi

2023

JRFM

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This study investigates the effect of corporate governance characteristics on the financial performance of 124 listed Indian companies that have undergone mergers and acquisitions between 2014 and 2020. It employs several performance measures, such as short-term capital market performance, long-term capital market performance, accounting- and market-based measures, and firm-level control factors. The study finds board size to be a positive and significant factor affecting short-term market performance. Furthermore, it also documents weak linkages with other corporate governance variables, such as board independence and CEO duality. Regarding control variables, leverage, company age, price-to-book ratio, and research and development expenses significantly impact acquiring companies’ financial returns. The findings add to our understanding of corporate governance’s impact on performance in cases such as mergers and acquisitions.

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Section: Literature Reviewmentioning

confidence: 84%

Unveiling the Nexus: Exploring the Impact of Corporate Governance on the Financial Performance of Acquiring Companies in the Indian Context

Satapathy,

Soni,

Patjoshi

2023

JRFM

View full text Add to dashboard Cite

show abstract

Unveiling the Nexus: Exploring the Impact of Corporate Governance on the Financial Performance of Acquiring Companies in the Indian Context

Satpathy,

Soni

2023

Preprint

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The study investigates the effect of corporate governance characteristics on the financial performance of 124 Indian-listed companies that have undergone mergers and acquisitions during 2014–2020. It employs several performance measures, such as short-term capital market performance, long-term capital market performance, accounting-based and market-based measures, and firm-level control factors. The study found board size to be a positive and significant factor affecting short-term market performance. Further, it also documents weak linkages with other corporate governance variables like board independence, CEO duality, etc. Regarding control variables, leverage, the company's age, price-to-book ratio, and research and development expenses significantly impact the acquiring companies' financial returns. The study's findings add to our understanding of corporate governance's impact on performance in cases such as mergers and acquisitions.

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Does Corporate Governance Affect M&A Performance?

Cited by 2 publications

References 8 publications

Unveiling the Nexus: Exploring the Impact of Corporate Governance on the Financial Performance of Acquiring Companies in the Indian Context

Unveiling the Nexus: Exploring the Impact of Corporate Governance on the Financial Performance of Acquiring Companies in the Indian Context

Unveiling the Nexus: Exploring the Impact of Corporate Governance on the Financial Performance of Acquiring Companies in the Indian Context

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