Portability of firm corporate governance in mergers and acquisitions

Bibliographic Details
Main Author: Hussain, Tanveer
Publication Date: 2022
Other Authors: Loureiro, Gilberto
Format: Article
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: https://hdl.handle.net/1822/79921
Summary: 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.
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spelling Portability of firm corporate governance in mergers and acquisitionscorporate governance portabilityglobal mergers and acquisitionsM&A announcement returnsinternational corporate governanceCiências Sociais::Economia e GestãoWe 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.This paper is financed by National Funds of the FCT – Portuguese Foundation for Science and Technology within the project UIDB/03182/2020Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)Universidade do MinhoHussain, TanveerLoureiro, Gilberto20222022-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/1822/79921enghttps://nipe.eeg.uminho.pt/en/nipe-publications/#documentos-de-trabalhoinfo:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2024-05-11T06:00:02Zoai:repositorium.sdum.uminho.pt:1822/79921Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-28T15:37:43.116862Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv Portability of firm corporate governance in mergers and acquisitions
title Portability of firm corporate governance in mergers and acquisitions
spellingShingle Portability of firm corporate governance in mergers and acquisitions
Hussain, Tanveer
corporate governance portability
global mergers and acquisitions
M&A announcement returns
international corporate governance
Ciências Sociais::Economia e Gestão
title_short Portability of firm corporate governance in mergers and acquisitions
title_full Portability of firm corporate governance in mergers and acquisitions
title_fullStr Portability of firm corporate governance in mergers and acquisitions
title_full_unstemmed Portability of firm corporate governance in mergers and acquisitions
title_sort Portability of firm corporate governance in mergers and acquisitions
author Hussain, Tanveer
author_facet Hussain, Tanveer
Loureiro, Gilberto
author_role author
author2 Loureiro, Gilberto
author2_role author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Hussain, Tanveer
Loureiro, Gilberto
dc.subject.por.fl_str_mv corporate governance portability
global mergers and acquisitions
M&A announcement returns
international corporate governance
Ciências Sociais::Economia e Gestão
topic corporate governance portability
global mergers and acquisitions
M&A announcement returns
international corporate governance
Ciências Sociais::Economia e Gestão
description 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.
publishDate 2022
dc.date.none.fl_str_mv 2022
2022-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://hdl.handle.net/1822/79921
url https://hdl.handle.net/1822/79921
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://nipe.eeg.uminho.pt/en/nipe-publications/#documentos-de-trabalho
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron:RCAAP
instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
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