Target firm takeovers and corporate governance: Evidence from BRICS
DOI:
https://doi.org/10.7770/safer-V12N1-art709Resumen
The study analyses the role of various corporate governance mechanisms in the takeovers of target firms in BRICS countries. Based on a sample of 837 M&A deals that occurred between 2010 and 2022, the results show that corporate governance mechanisms significantly influence both the likelihood of takeover and M&A performance. Board attributes such as size, independence and gender diversity have a favourable impact on the likelihood of takeover completion as well as performance. Among ownership attributes, activist institutional investors such as sovereign wealth and hedge funds and private equity/venture capitalists have a consistent and strong influence on both takeover completion success and performance. While other investors such as mutual and pension funds and insurance firms do not seem to have a strong relationship. Lastly, Environmental, Social & Governance (ESG)-linked CEO compensation is strongly related to both takeover completion likelihood and performance.
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Derechos de autor 2023 Sustainability, Agri, Food and Environmental Research
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