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The impact of gender diversity on shareholder wealth: Evidence from European bank M&A

Ioannis Tampakoudis, Michail Nerantzidis, Gabriel Eweje and Stergios Leventis

Journal of Financial Stability, 2022, vol. 60, issue C

Abstract: We explore the association between board gender diversity and shareholder value creation. Specifically, we investigate the impact of gender diversity on the economic impact of bank mergers and acquisitions (M&A). We employ a multi-year sample of M&A announced by European listed banks and find that: (i) the presence of women on the board of directors has a positive and statistically significant effect on acquirer gains; and (ii) boards with three or more women, or where women represent more than 25% of the board, have a stronger impact on acquirer gains than in the opposite case, consistent with critical mass theory. Moreover, banks with a critical mass of female directors perform better in undertaking value-enhancing M&A after the global financial crisis. Policy makers and practitioners could benefit from the findings by exploiting the advantages of board heterogeneity in terms of gender.

Keywords: Gender diversity; Mergers and acquisitions; Banks; Critical mass theory (search for similar items in EconPapers)
JEL-codes: G21 G34 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1016/j.jfs.2022.101020

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Journal of Financial Stability is currently edited by I. Hasan, W. C. Hunter and G. G. Kaufman

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