The effect of CEO's gender and networks on M&A bid premiums

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This thesis examines the relationship between gender and bid premiums, with CEO network as a moderator. It fills a literature gap, as the joint effect of gender and networks and bid premiums has not been studied yet. Network is measured using network centrality, network diversity (in terms of gender and age), tie strength and density as proxies. All constructs use the links between CEOs to calculate the score on that variable. The sample consists of 2,314 links between CEOs of listed Western European firms who completed M&A deals during 2013-2017 and other CEOs. When using a significance level of 0.01, evidence can be found for the fact that gender is of influence on the size of the bid premium. Therefore, the study states that women CEOs pay lower bid premiums than men CEOs. Besides, with 95% confidence it can be stated that density, duration and diversity in terms of gender and age are moderating variables in the relationship between CEO gender and bid premiums. The coefficients of the interaction terms being positive do not show evidence for the fact that the richer is a women’s network, the weaker is the effect of gender on bid premiums.
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