Midlands State University Library

Board governance and acquirers’ returns : a study of Australian acquisitions/

Chan, Winson

Board governance and acquirers’ returns : a study of Australian acquisitions/ created by Winson Chan and David Emanuel - Australian journal of management Volume 36, number 2 .

This paper examines the relation between acquirer (abnormal) returns and governance characteristics of the board of directors of the acquiring firm. The central question is: Are higher (acquirer) abnormal returns associated with ‘better’ board governance, having controlled for other factors that can affect returns? As acquisitions represent a significant change in the acquirer’s corporate structure and operations, the determinants of a successful acquisition are of considerable importance. We examine the relation between returns and governance variables using a sample of 80 Australian acquisitions that occurred between 1999 and 2005. We use both short-run and long-run (abnormal) returns to capture the wealth effects of the acquisitions. We find very limited evidence of a connection between our governance variables and acquirer returns.

03128962


Takeover--Corporate governance--Australia--Capital income

HD31 AUS