Corpus ID: 45758546

The Effect of Director Expertise on Acquisition Performance

  title={The Effect of Director Expertise on Acquisition Performance},
  author={A. Mkrtchyan},
  • A. Mkrtchyan
  • Published 2012
  • 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… CONTINUE READING
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