Purpose – This study aims to examine whether particular corporate governance mechanisms influence the performance of mergers and acquisitions. Design/methodology/approach – Regression analyses investigating 1,596 recent acquisitions in the US market completed over the five-year period from 2009 to 2013 are performed. Findings – The results show that board independency, CEO duality and level of CEO fixed compensation have an impact on the return of acquisitions. Moreover, the findings indicate that acquisitions significantly create value for bidders delivering a positive cumulative abnormal return upon announcement. Finally, also focusing on the 690 relative larger deals, there is a clear evidence of a positive influence of good corporate governance mechanisms over the quality of acquisitions completed. Originality/value – To our knowledge, this is the first paper trying to identify corporate governance mechanisms related to the best acquisition decisions, by using specifically the three corporate governance variables (CEO duality, CEO fixed compensation and board independency). Keywords Corporate governance, Board of directors, Remuneration, Chief executives, Boardroom performance, Acquisitions and mergers

The Impact of Board Independency, CEO Duality and CEO Fixed Compensation on M&A Performance,

Emanuele Teti;
2017-01-01

Abstract

Purpose – This study aims to examine whether particular corporate governance mechanisms influence the performance of mergers and acquisitions. Design/methodology/approach – Regression analyses investigating 1,596 recent acquisitions in the US market completed over the five-year period from 2009 to 2013 are performed. Findings – The results show that board independency, CEO duality and level of CEO fixed compensation have an impact on the return of acquisitions. Moreover, the findings indicate that acquisitions significantly create value for bidders delivering a positive cumulative abnormal return upon announcement. Finally, also focusing on the 690 relative larger deals, there is a clear evidence of a positive influence of good corporate governance mechanisms over the quality of acquisitions completed. Originality/value – To our knowledge, this is the first paper trying to identify corporate governance mechanisms related to the best acquisition decisions, by using specifically the three corporate governance variables (CEO duality, CEO fixed compensation and board independency). Keywords Corporate governance, Board of directors, Remuneration, Chief executives, Boardroom performance, Acquisitions and mergers
2017
Teti, Emanuele; Dell'Acqua, Alberto; Etro, Leonardo; Volpe, Michele
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11568/986870
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact