Board gender diversity and acquisition choices

Abeyratna Gunasekarage, Mehdi Khedmati, Kristina Minnick, Syed Shams

Research output: Contribution to journalArticleResearchpeer-review


We investigate the influence of gender diversity on the acquisition choices of bidding firms and find that firms with greater gender diversity are more likely to acquire nonlisted targets, use cash as the method of payment, and purchase firms in similar industries. Results show that these preferences are significantly influenced by female directors' financial expertise, target industry experience, mergers and acquisitions (M&A) experience, academic and professional qualifications, and networks. The percentage of female directors on boards is positively correlated with the market response to the announcement of acquisition choices preferred by female directors. Furthermore, bidders improve efficiency and accumulate long-term value gains through the contributions made by their female directors to these acquisition choices.

Original languageEnglish
Pages (from-to)949-991
Number of pages43
JournalJournal of Financial Research
Issue number4
Publication statusPublished - 2023

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