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The effect of interlocking directorates on mergers and acquisitions in Brazil.
- Source :
- Journal of Management & Governance; Sep2021, Vol. 25 Issue 3, p811-839, 29p, 9 Charts
- Publication Year :
- 2021
-
Abstract
- This study investigates the effect of interlocking directorates on national and international mergers and acquisitions (M&A) in Brazil. Based on a sample of 153 large Brazilian firms in a time series (2000–2015), and using network techniques and regression analysis, this study addresses the hypothesis: board interlocking reduces the asymmetry of information in M&A, leading companies with a greater number of ties (degree centrality) to be more likely to participate in M&A. The results show that firms that have a larger number of ties with other firms through board interlocks (higher degree centrality) are more likely to perform M&A. Other network measures (closeness, eigenvector, betweenness, and structural holes) have no significant impact on the likelihood to participate in M&A. This study examines the impact of board interlocking on firms' propensity to undertake M&A while controlling for financial, corporate governance, and country-level governance variables in the explanatory model. This paper also contributes by identifying the determinants of M&A performed by companies headquartered in emerging countries such as Brazil, a major participant in M&A processes at the international level. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 13853457
- Volume :
- 25
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Journal of Management & Governance
- Publication Type :
- Academic Journal
- Accession number :
- 151526380
- Full Text :
- https://doi.org/10.1007/s10997-020-09529-7