On the likelihood and type of merger and acquisition in the US listed companies: the role of females on the board

What is it about?

This paper explores whether and how females on the board of directors affect the US public companies' merge and acquisition (M&A) decisions of the US public companies. It offers two main results. First, we find that companies with a greater number of females on the board is negatively associated with the likelihood of making an acquisition decision. Second, focusing on companies that undertake the acquisition, we find that companies with a greater number of females on the board are likely to acquire public and domestic targets, as compared to private and domestic targets, respectively. Collectively, our results are consistent with the premises of gender behaviour differences theory. These results also expand literature on gender diversity by providing additional evidence-based insights to the debate about diversity on boards, so as to inform policy and to offer practical recommendations for the effective implementation of gender diversity on the boards of companies. Dr Yousry Ahmed dryousry_2005@yahoo.com

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