Demand and Career Outcomes for Directors with M&A Experience

Jeganathan, Davina M.

Demand and Career Outcomes for Directors with M&A Experience

Jeganathan, Davina M.

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Publication Type:: Thesis
Issue Date:: 2021

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Field	Value	Language
dc.contributor.author	Jeganathan, Davina M.
dc.date.accessioned	2022-04-13T00:45:40Z
dc.date.available	2022-04-13T00:45:40Z
dc.date.issued	2021
dc.identifier.uri	http://hdl.handle.net/10453/156168
dc.description	University of Technology Sydney. Faculty of Business.	en_US.UTF-8
dc.description.abstract	The corporate governance literature shows that directors receive additional directorships for engaging in mergers and acquisitions (M&A) even if their experience does not create value for shareholders. This occurs despite prior research finding that directors only create value for shareholders during subsequent acquisitions if their prior experience is positive. This thesis further investigates the demand for directors with M&A experience in the director labour market. First, using US data, this thesis shows that acquisition experience leads to more prestigious directorships for acquiring directors both in value-increasing and value-destroying acquisitions. However, higher director responsibility is not associated with penalties following poor M&A decisions. This reinforces that, in terms of acquisitions, experience is valued over ability. Second, this thesis identifies an association between firm and CEO characteristics and the appointment of directors with M&A experience to the board. The results also suggest that directors with M&A experience are compensated more highly than other directors. Finally, even though firms demand experienced directors, shareholders vote against the appointment of directors with M&A experience.	en_US.UTF-8
dc.format	Thesis (PhD)
dc.language.iso	en_US	en_US.UTF-8
dc.relation	https://opus.lib.uts.edu.au/bitstream/10453/156168/2/02whole.pdf
dc.rights	The author owns the copyright in this thesis including all reproduction and reuse rights for the work. The work may not be altered without the permission of the copyright owner. Attribution is essential when quoting or paraphrasing from this thesis.
dc.rights	au.edu.uts.lib/ppc
dc.rights	info:eu-repo/semantics/openAccess
dc.title	Demand and Career Outcomes for Directors with M&A Experience	en_US.UTF-8
dc.type	Thesis
utslib.copyright.status	open_access	*

Abstract:

The corporate governance literature shows that directors receive additional directorships for engaging in mergers and acquisitions (M&A) even if their experience does not create value for shareholders. This occurs despite prior research finding that directors only create value for shareholders during subsequent acquisitions if their prior experience is positive. This thesis further investigates the demand for directors with M&A experience in the director labour market. First, using US data, this thesis shows that acquisition experience leads to more prestigious directorships for acquiring directors both in value-increasing and value-destroying acquisitions. However, higher director responsibility is not associated with penalties following poor M&A decisions. This reinforces that, in terms of acquisitions, experience is valued over ability. Second, this thesis identifies an association between firm and CEO characteristics and the appointment of directors with M&A experience to the board. The results also suggest that directors with M&A experience are compensated more highly than other directors. Finally, even though firms demand experienced directors, shareholders vote against the appointment of directors with M&A experience.

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http://hdl.handle.net/10453/156168