Non-executive directorship importance and takeover hostility: Australian evidence

Day, C; Bugeja, M; Spiropoulos, H; Matolcsy, Z

Non-executive directorship importance and takeover hostility: Australian evidence

Day, C Bugeja, M

Spiropoulos, H

Matolcsy, Z

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Publisher:: WILEY
Publication Type:: Journal Article
Citation:: Accounting and Finance, 2023, 63, (1), pp. 769-793
Issue Date:: 2023-03-01

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Field	Value	Language
dc.contributor.author	Day, C
dc.contributor.author	Bugeja, M https://orcid.org/0000-0002-1941-5092
dc.contributor.author	Spiropoulos, H https://orcid.org/0000-0002-7748-6577
dc.contributor.author	Matolcsy, Z
dc.date.accessioned	2024-03-07T21:55:22Z
dc.date.available	2024-03-07T21:55:22Z
dc.date.issued	2023-03-01
dc.identifier.citation	Accounting and Finance, 2023, 63, (1), pp. 769-793
dc.identifier.issn	0810-5391
dc.identifier.issn	1467-629X
dc.identifier.uri	http://hdl.handle.net/10453/176307
dc.description.abstract	This study investigates the importance of the target firm directorship to target firm non-executive directors during takeovers. Using Australian data and a size-based measure of directorship importance, we find a positive association between takeover hostility and directorship importance after controlling for takeover premiums and target firm size. Further analysis reveals that directorship importance leads to a greater likelihood of offer price revisions following initial rejection of a takeover bid, but not the likelihood of bid success. Our findings are consistent with target firm non-executive directors exhibiting self-serving behaviour at directorships which they consider more important to their reputation.
dc.language	English
dc.publisher	WILEY
dc.relation.ispartof	Accounting and Finance
dc.relation.isbasedon	10.1111/acfi.12952
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1402 Applied Economics, 1501 Accounting, Auditing and Accountability, 1502 Banking, Finance and Investment
dc.subject.classification	Accounting
dc.subject.classification	3501 Accounting, auditing and accountability
dc.subject.classification	3502 Banking, finance and investment
dc.subject.classification	3801 Applied economics
dc.title	Non-executive directorship importance and takeover hostility: Australian evidence
dc.type	Journal Article
utslib.citation.volume	63
utslib.for	1402 Applied Economics
utslib.for	1501 Accounting, Auditing and Accountability
utslib.for	1502 Banking, Finance and Investment
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Business
pubs.organisational-group	University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	open_access	*
dc.date.updated	2024-03-07T21:55:21Z
pubs.issue	1
pubs.publication-status	Published
pubs.volume	63
utslib.citation.issue	1

Abstract:

This study investigates the importance of the target firm directorship to target firm non-executive directors during takeovers. Using Australian data and a size-based measure of directorship importance, we find a positive association between takeover hostility and directorship importance after controlling for takeover premiums and target firm size. Further analysis reveals that directorship importance leads to a greater likelihood of offer price revisions following initial rejection of a takeover bid, but not the likelihood of bid success. Our findings are consistent with target firm non-executive directors exhibiting self-serving behaviour at directorships which they consider more important to their reputation.

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http://hdl.handle.net/10453/176307