Corpus ID: 45758546

The Effect of Director Expertise on Acquisition Performance

  title={The Effect of Director Expertise on Acquisition Performance},
  author={Anahit Mkrtchyan},
Corporate boards contribute to firm value by providing oversight and advice during major strategic decisions such as acquisitions. This study posits that boards’ effectiveness in evaluating these strategic events can be enhanced by directors’ prior experience in acquisitions. I find that outside directors’ prior involvement in acquisitions is associated with a significant increase in acquisition announcement returns. Further analysis identifies two potential channels for this effect. First… Expand

Tables from this paper

This study examine the impact of Firm reputation and CEO Characteristics toward firm performance after corporate action acquisition and merger. This study also examines how CEO characteristicsExpand
Strength in Diversity: How Board Heterogeneity Influences Investment, R&D, and Product Differentiation
An exhaustive literature has analyzed the function of corporate board directors as monitors, yet analyses of the advising role of corporate directors have been rare. This study fills this gap byExpand
The governance role of shareholders and board of directors on firm performance: an eclectic governance-performance model
Purpose This study aims to examine the governance role of shareholders and board of directors in determining firm performance through an eclectic multi-theoretic model that integrates structure andExpand
Industry Expertise, Information Leakage and the Choice of M&A Advisors
This paper examines the impacts of M&A advisors’ industry expertise on firms’ choice of advisors in mergers and acquisitions. We show that an investment bank's expertise in merger parties’ industriesExpand
Industry Expertise, Information Leakage, and the Choice of M&A Advisors
This paper examines the impacts of M&A advisors’ industry expertise on firms’ choice of advisors in mergers and acquisitions. We show that an investment bank's expertise in merger parties’ industriesExpand
Return from Indian Acquisitions: Does Deal Size Matter? i
Mergers and acquisitions are the corporate growth strategy that has grown in recent years. The performance of companies in post acquisition period is influenced by various factors; one of the factorsExpand
Does the Gender of Directors Matter?
How does gender-balance affect the working of boards of directors? I examine boards that have been required for two decades to be relatively gender-balanced: boards of business companies in which theExpand
Do Board Interlocks Increase Innovation? Evidence from a Corporate Governance Reform in India
We examine the effect of board interlocks on patenting and R&D spending for publicly traded companies in India. We exploit a corporate governance reform to address the endogeneity of board interlocksExpand
Corporate Governance Mechanisms and Jordanian Companies' Financial Performance
Previous studies in the literature review that dealt with corporate governance have recently witnessed significant growth that led to some new trends. The purpose of the current paper is toExpand
The impact of Risk Management on Bank Sector Analytical study on Cihan Bank
This study reviews theories and models on operational and strategic risk management, as well as the main frameworks and regulations on risk management. The study focused on Cihan banks and theExpand


Does the Director Labor Market Offer Ex Post Settling-Up for CEOs? The Case of Acquisitions
A common view in the literature is that the director labor market provides an ex post settling-up for past decisions by rewarding CEO ability and actions that are consistent with shareholderExpand
Outside directors and CEO turnover
Abstract This paper examines the relation between the monitoring of CEOs by inside and outside directors and CEO resignations. CEO resignations are predicted using stock returns and earnings changesExpand
What Matters in Corporate Governance?
We investigate which provisions, among a set of twenty-four governance provisions followed by the Investor Responsibility Research Center (IRRC), are correlated with firm value and stockholderExpand
Do outside directors monitor managers
Abstract Examining 128 tender offer bids made from 1980 through 1987, we categorize outside directors as either independent of or having some affiliation with managers, and find that bidding firms onExpand
Higher market valuation of companies with a small board of directors
I present evidence consistent with theories that small boards of directors are more effective, Using Tobin’s Q as an approximation of market valuation, I find an inverse association between boardExpand
The Hubris Hypothesis of Corporate Takeovers
Despite many excellent research papers, we still do not fully understand the motives behind mergers and tender offers or whether they bring an increase in aggregate market value. In theirExpand
Wealth Destruction on a Massive Scale? A Study of Acquiring-Firm Returns in the Recent Merger Wave
Acquiring-firm shareholders lost 12 cents at the announcement of acquisitions for every dollar spent on acquisitions for a total loss of $240 billion from 1998 through 2001, whereas they lost $7Expand
How Experience and Network Ties Affect the Influence of Demographic Minorities on Corporate Boards
This study examines how the influence of directors who are demographic minorities on corporate boards is contingent on the prior experience of board members and the larger social structural contextExpand
The Influence of Organizational Acquisition Experience on Acquisition Performance: A Behavioral Learning Perspective
Drawing on work from behavioral learning theory in psychology, this study examines the influence of prior organizational acquisition experience on the performance of acquisitions. This theory, whichExpand
Separation of Ownership and Control
This paper analyzes the survival of organizations in which decision agents do not bear a major share of the wealth effects of their decisions. This is what the literature on large corporations callsExpand