The effect of tenure and age diversity in corporate boards on M&A premiums
Date
2021-09-28Author
Hossain, Forhad
Type
ThesisDegree Level
MastersMetadata
Show full item recordAbstract
Using a comparatively large sample of North American M&A transactions, I examine the effect of acquirer boards’ tenure and age diversities on M&A premium. Going against the general understanding of the value-enhancing contribution of board diversity in corporate boards, my finding concludes that both tenure and age diversity in acquirer corporate boards are associated with an increase in M&A premium. Also, boards with more tenure and age diversity are associated with taking longer time to complete M&A deals. Thus, my results suggest that certain types of diversity may be wealth-destroying, at least when it comes to corporate mergers. My results are backed by a battery of robustness and endogeneity tests.
Degree
Master of Science (M.Sc.)Department
FinanceProgram
FinanceSupervisor
Maung, Min; Wilson, CraigCommittee
Park, Han-Up; Yang, Fan; Racine, MarieCopyright Date
September 2021Subject
Corporate Boards
Tenure Diversity
Age Diversity
M&A Premium
M&A deal Completion Days