Does Board Gender-Diversity Matter in M&A Activities?

Corporate entrepreneurship and governance: Mergers and acquisitions in Europe

“…Benkraiem et al (2021) found no relationship between the presence of women and the decision to adopt a corporate venture capital strategy. Bugeja et al (2012) observed no relationship between the gender diversity of the board and the premium paid or the reaction of the market to the announcement of the acquisition. Similarly, Ahern and Dittmar (2012) found that the companies in the Norwegian market that were most affected by the imposition of a gender quota made more acquisitions, although they did not observe an impact on value creation.…”

“…Regarding acquisition processes, Bange and Mazzeo (2004) showed that bidders are less likely to negotiate the bid premium when the CEO is the chair of the board, so the likelihood that a takeover succeeds is higher if one person holds both positions. Bugeja et al (2012) also highlighted the greater influence of the CEO on setting the bid premium when the same individual is the chair of the board. Ghazal (2015) found that dual-role CEOs act in the interest of their shareholders by bargaining 16.1 % more aggressively in takeover negotiations than single-role CEOs.…”

“…However, previous evidence of the influence of board size on acquisitiveness is mixed, and other authors have reported different results. For example, Bugeja et al (2012) and Masulis et al (2007) found that the market reaction to bid announcements is not influenced by board size. On the contrary, Choi et al (2019) observed that the likelihood of a large loss acquisition is negatively related to the number of directors.…”

“…Masulis et al (2007) did not observe a relationship between the independence of the board and acquirer returns. Nevertheless, Bugeja et al (2012) noted the advantages and disadvantages of independent directors for acquisitiveness. Although they make more effective monitors, they involve higher information costs.…”

Key Characteristics of Successful Biotechnology Company Leaders

“…This diversity can improve the board's decision-making, enhance the company's image, and deliver better environmental, social, and governance performance (Marquis & Lee, 2010). A University of Leeds study shows that having at least one woman on a board decreased a company's chance of shutting down (Joy et al, 2007;Perlberg, 2012;Bugeja et al, 2012;Carter et al, 2003). Catalyst found that Fortune 500 companies that have at least three women on the board perform significantly better than those without at least three women, and they showed an increase of 73% return on sales, 83% return on equity, and a 112% return on investment (Wilson & Altanlar, 2009;Catalyst Report, 2013).…”