Hussain, Tanveer and Loureiro, Gilberto (2022) Portability of firm corporate governance in mergers and acquisitions. Research in International Business and Finance, 63. p. 101777. DOI https://doi.org/10.1016/j.ribaf.2022.101777
Hussain, Tanveer and Loureiro, Gilberto (2022) Portability of firm corporate governance in mergers and acquisitions. Research in International Business and Finance, 63. p. 101777. DOI https://doi.org/10.1016/j.ribaf.2022.101777
Hussain, Tanveer and Loureiro, Gilberto (2022) Portability of firm corporate governance in mergers and acquisitions. Research in International Business and Finance, 63. p. 101777. DOI https://doi.org/10.1016/j.ribaf.2022.101777
Abstract
We study the corporate governance portability from bidders to targets in Mergers and Acquisitions and its impact on bidder announcement returns. We find that the bidder’s cumulative abnormal returns are higher in acquisitions where the bidder’s corporate governance quality exceeds that of the target. This result suggests a positive valuation effect for bidder shareholders resulting from the portability of good firm corporate governance from bidders to targets. We also find that this effect is stronger when bidders are domiciled in countries with better corporate governance. The results pass several robustness tests, including alternative measures of firm corporate governance and different sample periods.
Item Type: | Article |
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Uncontrolled Keywords: | Corporate governance portability; Global mergers and acquisitions; International corporate governance; M&A announcement returns |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 25 May 2023 11:39 |
Last Modified: | 30 Oct 2024 21:02 |
URI: | http://repository.essex.ac.uk/id/eprint/35661 |
Available files
Filename: WP-08.2022.pdf
Licence: Creative Commons: Attribution-Noncommercial-No Derivative Works 3.0