Boards that Make a Difference in Firm’s Acquisitions: The Role of Interlocks and Former Politicians in Spain

Santiago Kopoboru, Gloria Cuevas-Rodríguez and Leticia Pérez-Calero
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Santiago Kopoboru: Department of Business Administration and Marketing, Faculty of Business, Universidad Pablo de Olavide, 41013 Seville, Spain
Gloria Cuevas-Rodríguez: Department of Business Administration and Marketing, Faculty of Business, Universidad Pablo de Olavide, 41013 Seville, Spain
Leticia Pérez-Calero: Department of Business Administration and Marketing, Faculty of Business, Universidad Pablo de Olavide, 41013 Seville, Spain

Sustainability, 2020, vol. 12, issue 3, 1-19

Abstract: This study examines the influence of board interlocks and former politicians on decisions regarding acquisitions in Spain. Our research suggests that board interlocks to other firms can positively influence operations in terms of acquisition scale. Our findings also show that this relationship is positively moderated by the presence of former politicians. That is, the effects of interlocks on acquisitions are amplified further when there are former politicians on boards, which confirms their role as community influentials. In the case of Spain, and under-regulated industries, this complementary effect is maintained. However, the role played by interlocks seems to be more important than former politicians, which means that board interlocks can replace other formal methods of acquiring information (through former politicians) while attempting acquisitions.

Keywords: board interlocks; former politicians; regulated industries; acquisitions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
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