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Cross-border M&A, gender-equal culture, and board gender diversity

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  • Bao, Yangming
  • Li, Jie

Abstract

This paper investigates how acquirers' board gender structures respond to the target country's gender-equal culture following cross-border M&A deals. Using a sample of Chinese public firms that conducted cross-border M&As from 2008 to 2019, we find that acquirers tend to adjust the proportion of female directors to better align with the target country's gender-equal culture. We address the potential selection concerns by adopting the Heckman two-step method and show the results are robust. Further analyses show that acquirers are more likely to adjust their board gender structures when the deal size and the target size are larger, and when the communication and legitimacy barriers are greater, suggesting the adjustment is a strategic move. Moreover, we find evidence of synergy gains following board adjustments in terms of enhanced firm performance and increased innovations.

Suggested Citation

  • Bao, Yangming & Li, Jie, 2024. "Cross-border M&A, gender-equal culture, and board gender diversity," Journal of Corporate Finance, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:corfin:v:84:y:2024:i:c:s0929119923001761
    DOI: 10.1016/j.jcorpfin.2023.102527
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    More about this item

    Keywords

    Cross-border M&A; Gender equality; Board gender diversity; Culture differences;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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