The effect of director experience on acquisition performance

• 成果类型: Article
• 署名作者: Field, Laura Casares; Mkrtchyan, Anahit
• 署名单位: University of Delaware; Northeastern University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2016.12.001
• 发表日期: 2017
• 页码: 488-511
• 关键词: CORPORATE GOVERNANCE; Board of directors; Mergers and Acquisitions

摘要

Prior research finds that firms hire directors for their acquisition experience, regardless of acquisition quality (whether their prior acquisitions earned positive or negative announcement returns). Using several short- and long-run measures, we examine the effects of directors' acquisition experience on the acquisition performance of firms hiring them. We find that board acquisition experience is positively related to subsequent acquisition performance, demonstrating that firms appropriately value experience. Beyond experience itself, however, the quality of directors' prior acquisitions is also important. Our results suggest that firms may be better served to select directors based upon both past acquisition experience and acquisition performance. (C) 2016 Elsevier B.V. All rights reserved.