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On the likelihood and type of merger and acquisition in the U.S. listed companies: The role of females on the board

Lookup NU author(s): Dr Yousry AhmedORCiD

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0).

Abstract

Abstract Purpose – This paper examines whether and how females on the board of directors affect US-listed companies’ merger and acquisition (M&A) decisions. Specifically, the paper concerns the impact of females in the boardroom on the likelihood and type of M&A deals (i.e., foreign vs domestic acquisitions and listed vs unlisted acquisitions). Design/methodology/approach – Archival data of M&A deals employing a sample of 17,899 firm-year observations of the US public companies from 2012 to 2018 are collected and examined using probit and logit models. Findings – Our paper offers three main results supporting the propositions of behavioral consistency theory. First, female directors are negatively associated with the likelihood of making the acquisition. Second, female directors are positively associated with acquiring domestic rather than foreign targets. Third, female directors are positively associated with acquiring listed rather than unlisted targets. Practical implications – Our findings provide additional evidence-based insights into the debate about diversity on boards with the aim of informing policy and offering practical recommendations for the effective implementation of gender diversity on the boards of companies. Originality/value – Overall, consistent with the premise of behavioral theory, our results expand the literature on gender diversity by augmenting the argument that females’ behavior in corporate policies is viewed as opposition to change and a tendency toward risk aversion and, thus, influences companies’ strategic investment decisions, such as M&A.

Publication metadata

Author(s): Ahmed Y, Song Y, Elsayed M

Publication type: Article

Publication status: Published

Journal: International Journal of Accounting and Information Management

Year: 2022

Volume: 30

Issue: 3

Pages: 391-407

Online publication date: 04/04/2022

Acceptance date: 08/03/2022

Date deposited: 17/03/2022

ISSN (print): 1834-7649

ISSN (electronic): 1758-9037

Publisher: Emerald Publishing Limited

URL: https://doi.org/10.1108/IJAIM-10-2021-0205

DOI: 10.1108/IJAIM-10-2021-0205

ePrints DOI: 10.57711/pw6m-bj65

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