Board Gender Diversity, Gender Quota Laws and M&A Performances. An event study on European M&A Deals
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2020-11-18
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en
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Abstract
The fact that mergers and acquisitions are often rather value-destroying than value-enhancing is often attributed to the male dominance on corporate boards. The striking gender imbalance on corporate boards has led to the implementation of gender quota laws in several European countries. This study examines the impact of board gender diversity on M&A performances of listed European acquirers. An event study is performed to obtain the cumulative abnormal returns from 2,579 firms that were involved in a total of 14,982 M&A deals from 2003 to 2018. The results indicate that there is no significant relationship between board gender diversity and M&A performances. Furthermore, it is found that the presence of at least three female directors on the acquiring board does not significantly impact the M&A performances. Finally, it is found that the effect of board gender diversity on M&A performances is significantly stronger in countries with a binding gender quota law.
Keywords: mergers and acquisitions, gender diversity, board of directors, abnormal returns, gender quota laws
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Faculteit der Managementwetenschappen