Corporate Governance and M&A

This study aims to connect the topics Corporate Governance and Mergers & Acquisitions (M&A). As a result of the fact that most M&A deals end up failing, this study has tried to gain some more insight into the problem in order gain a potential solution. In order to do so, this study has tested how the number of blockholders, the board of directors and CEO remuneration schemes relate to M&A deal performance, measured by the cumulative abnormal returns to acquiring-firm shareholders surrounding M&A announcements. Data for this study has been retrieved from several data sources and contains 148 U.S. based domestic M&A deal observations over the period 2007 - 2011. Based on several regression models, evidence has been found for a positive impact of CEO stock option ownership as well as of certain board independence levels. As a result of this study, new knowledge has been added to the research field of both, corporate governance as well as M&A and in practice this study adds value as based on the results, firms will be able to adjust