Female board representation and corporate acquisition intensity

Chen, Guoli; Crossland, Craig; Huang, Sterling

doi:10.1002/smj.2323

Cited by 287 publications

(248 citation statements)

References 55 publications

(60 reference statements)

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“…In the context of mergers and acquisitions, acquiring firm leaders' 55 hubris (Hayward & Hambrick, 1997), narcissism (Chatterjee & Hambrick, 2007) and self-interest (e.g., Deutsch, Keil, & Laamanen, 2007;Gamache, McNamara, Mannor, & Johnson, 2014;Devers, McNamara, Haleblian, & Yoder, 2013) have been shown to influence decisions in the deal-making phase. Leaders' prior experience (e.g., Walters, Kroll, & Wright, 2008;McDonald et al, 2008), functional position (Melone, 1994), gender (e.g., Chen, Crossland, & Huang, 2014), tenure and educational background (Nadolska & Barkema, 2014) also influence decisions regarding whether to acquire a firm and how much to pay. This suggests that a promising avenue for future research would be to examine how leaders' personality traits and backgrounds influence their decisions regarding PMI.…”

Section: Decision-makingmentioning

confidence: 99%

The Process of Postmerger Integration: A Review and Agenda for Future Research

Graebner¹,

Heimeriks

Huy

et al. 2017

ANNALS

296

354

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Mergers and acquisitions continue to be prevalent despite frequently yielding disappointing outcomes. Post-merger integration plays a critical role in M&A success, yet many questions about M&A implementation remain unanswered. In this article, we review research on post-merger integration, which we organize around strategic integration, sociocultural integration, and experience and learning. We then lay out a research agenda that centers on expanding our understanding of processual dynamics in post-merger integration. We focus on opportunities related to temporality; decision-making; practices and tools; and emotionality.

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Section: Decision-makingmentioning

confidence: 99%

The Process of Postmerger Integration: A Review and Agenda for Future Research

Graebner¹,

Heimeriks

Huy

et al. 2017

ANNALS

296

354

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show abstract

“…Female representation on corporate boards is considered to be a significant determinant of corporate policymaking (Adams & Ferreira, 2009;Levi, Li, & Zhang, 2014;Mohan, 2014). The empirical evidence suggests that women on boards are associated with higher financial performance and market valuation (Adams & Ferreira, 2009;Erhardt, Werbel, & Shrader, 2003;Liu et al, 2014;Nadeem, Suleman, & Ahmed, 2019); firm innovation (Torchia, Calabrò, & Huse, 2011); less empire-building through acquisitions (Chen, Crossland, & Huang, 2016;Levi et al, 2014); better audit outcomes (Cameran, Ditillo, & Pettinicchio, 2018;Hardies, Breesch, & Branson, 2016); and better corporate social responsibility ratings (Bear, Rahman, & Post, 2010;Nadeem, Zaman, & Saleem, 2017;Post, Rahman, & Rubow, 2011). Other experimental studies suggest that, relative to men, women are risk averse with known probabilities (Fehr-Duda, De Gennaro, & Schubert, 2006) and investment decisions (Bernasek & Shwiff, 2001), although these studies are largely based on gender differences in the general population.…”

Section: Boardroom Gender Diversitymentioning

confidence: 99%

Board gender diversity and environmental, social, and economic value creation: Does family ownership matter?

2019

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Prior literature on firm value creation for stakeholders has oversimplified and narrowed the concept of value down to “economic returns.” Although economic returns are fundamental to a firm's core stakeholders (i.e., shareholders), other legitimate stakeholders want “value” beyond economic returns. We define stakeholder value as the financial and nonfinancial returns a firm can offer to its legitimate stakeholders, and empirically investigate whether board gender diversity (BGD) improves our multidimensional measure of value. Using Thomson Reuters' ASSET4 data for U.K.‐listed firms available from Eikon for the period 2007–2017, we report a significant positive relationship between BGD and stakeholder value creation. In particular, BGD increases social and environmental value creation in addition to economic returns. Furthermore, our results suggest that even though gender‐diverse boards are associated with stakeholder value creation in family firms, this is only conspicuous for environmental value creation. The findings suggest that although female directors cater to the interests of broader stakeholder groups, family ownership causes them to mainly focus on environmental stakeholders. The study provides important implications for regulators, stakeholders, and academic scholars.

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“…We also control for firm attributes that may stimulate or hamper acquisitions. The variable firm size was measured with the logarithm of the firm's total assets (Chen et al, 2014;Kor, 2006). This variable accounts for the fact that larger firms might announce more acquisitions and develop more political connections (Hillman, Keim, & Schuler, 2004).…”

Section: Control Variablesmentioning

confidence: 99%

How do firm political connections impact foreign acquisitions? The effects of decision makers' political and firm embeddedness

Albino-Pimentel¹,

Anand

Dussauge

2018

Global Strategy Journal

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Research Summary: We examine how firm political connections established through the political embeddedness of senior decision makers affect firms' foreign acquisition strategies. We argue that such political embeddedness affects the mental models of decision makers and, in turn, influences their preferences for particular strategies. We propose that political embeddedness leads to the formation of mental models that favor foreign acquisition strategies. We further argue that the firm embeddedness of politically embedded decision makers alters their mental models, thereby mitigating their inclination for such strategies. We find evidence consistent with our mental models explanation using a sample of foreign acquisitions made by French publicly traded firms during the 2009–2014 period. Overall, this study contributes to a better understanding of the mechanisms through which political connections impact global strategy. Managerial Summary: We investigate how firm political connections affect firms' foreign acquisition strategies. We argue that when firms have top decision makers with close connections to the government, they will make more foreign acquisitions. We further argue that this inclination toward foreign acquisitions is driven primarily by nonexecutive board members, with politically connected executives appearing to be more reluctant to engage in such strategies. We find evidence consistent with these ideas when examining foreign acquisitions made by French publicly traded firms managed by graduates of the prestigious ENA government school, which trains many government and senior civil servants in France.

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Female board representation and corporate acquisition intensity

Cited by 287 publications

References 55 publications

The Process of Postmerger Integration: A Review and Agenda for Future Research

The Process of Postmerger Integration: A Review and Agenda for Future Research

Board gender diversity and environmental, social, and economic value creation: Does family ownership matter?

How do firm political connections impact foreign acquisitions? The effects of decision makers' political and firm embeddedness

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