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Female board representation and corporate acquisition intensity
Author(s) -
Chen Guoli,
Crossland Craig,
Huang Sterling
Publication year - 2016
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2323
Subject(s) - representation (politics) , mergers and acquisitions , robustness (evolution) , on board , business , sample (material) , identity (music) , demographic economics , marketing , econometrics , psychology , economics , political science , finance , engineering , biochemistry , chemistry , chromatography , acoustics , gene , aerospace engineering , physics , politics , law
This study examines the impact of female board representation on firm‐level strategic behavior within the domain of mergers and acquisitions ( M & A ). We build on social identity theory to predict that greater female representation on a firm's board will be negatively associated with both the number of acquisitions the firm engages in and, conditional on doing a deal, acquisition size. Using a comprehensive, multiyear sample of U.S . public firms, we find strong support for our hypotheses. We demonstrate the robustness of our findings through the use of a difference‐in‐differences analysis on a subsample of firms that experienced exogenous changes in board gender composition as a result of director deaths . Copyright © 2014 John Wiley & Sons, Ltd.