 The Effect of Board Structure on Bidder-Shareholders' Wealth: Further Evidence from the UK Bidding FirmsCharalambos Th. Constantinou and Costas Th. Constantinou Working Papers from Centre for Business Research, University of Cambridge Abstract: In this study we provide evidence of cross-sectional dependence of bidder-shareholder wealth and target’s board characteristics. More specifically we provide evidence that the percentage of non-executives, the board size, the stock holdings of executives, and the other directorships held by non-executives serving the target board are important in assessing the announcement of the bid, whereas in the bidder’s board only the percentage of non-executive directors is important for bidder-shareholders. In addition to that we provide evidence that some of these relationships are not monotonic in nature. Finally, in this study it is documented that bidder-shareholder wealth is favoured in acquisitions where bidders have marginally more executive than non-executive directors in their boards and therefore the question arises as to whether “dependent” boards are more efficient than “independent” ones. Keywords: Takeovers; Board Characteristics; Corporate Governance; Shareholder-wealth (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cbr:cbrwps:wp261 Access Statistics for this paper More papers in Working Papers from Centre for Business Research, University of Cambridge |
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