The Moderation Effect of a Gender Quata on the relationship between gender Diversity & M&A outcome

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Men in leadership positions still outnumber wamen. Therefore, the European Commission wants to increase gender diversity in corporate boards. In order to do so, some European countries implemented a binding gender quota to increase gender diversity. What would happen when gender diversity is enforced by a gender quota? Men and wamen seem to behave differently in a corporate board about decision making. Men are more overconfident and risk-seeking, compared to wamen. This difference in decision making is investigated for mergers and acquisitions. M&A deals are aften value-destroying due to overconfidence and risk-seeking behavior. Could increasing gender diversity influence the M&A outcome? This research examines the effect of gender diversity on the bid premium and how a gender quota moderates this relation. The sample consists of 277 M&A deals done by publicly listed firms in European countries from 2003 till 2017. The main finding of this research is that the re is a negative effect of gender diversity on the bid premium, but this effect is not statistically significant. Moreover, the gender quota also show no statistically significant moderation effect, but the expected negative coefficient is found.
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