CEO Attributes, Board Composition and Acquirer Value Creation: A Canadian Study
BOUJENOUI A. W. BEN AMAR and C. FRANCOEUR, 2011. CEO Attributes, Board Composition and Acquirer Value Creation: A Canadian Study. Canadian Journal of Administrative Sciences, 28(4), 480-492.
We examined CEO attributes, board composition and the ownership structure for their relationship to the share performance of the acquiring company around the acquisition announcement. Based on 273 acquisitions by Canadian firms from 1998 through 2002, we show that the levels of CEO and director ownership as well as the level of board independence were positively associated with the short term financial performance of the acquirer. Board size was negatively related to value creation. Finally, cash-based deals and cross-border transactions were also positively related to increases in shareholder wealth for the acquirer.
