Choice of acquisition form in Australia and the post-takeover employment of target firm directors on the acquiring firm board

Bugeja, M., da Silva Rosa, R., Izan, H.Y. and Ngan, S. (2017) Choice of acquisition form in Australia and the post-takeover employment of target firm directors on the acquiring firm board. Accounting & Finance, In press .

Abstract

In Australia, a corporate acquisition can be structured as either a scheme of arrangement or a takeover. We investigate the association between deal structure and the retention of target directors on the merged entity board. We find that the odds of a target director subsequently sitting on the merged entity's board are significantly higher in schemes. The results also show that premiums are lower in schemes of arrangement when additional target directors are appointed to the board of the acquiring firm. The findings indicate that target director appointment is unrelated to the merged entity's post-acquisition performance.

Publication Type:	Journal Article
Murdoch Affiliation:	School Of Business and Governance
Publisher:	Blackwell Publishing
Copyright:	© 2017 AFAANZ.
URI:	http://researchrepository.murdoch.edu.au/id/eprint/40025

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