M&A Announcement Short-term Stock Re-turn and Gender Diversity: Evidence from S&P 500

Abstract

This thesis discusses mergers and acquisitions, managerial gender diversity and studies the effect of gender diversity on stock returns around merger and acquisition announcements. The purpose of the thesis is to give an understand-ing of mergers and acquisitions and the factors affecting the M&A announce-ment stock returns but also a governance point of view by gender diversity.

The study is divided into five sections. First, the study introduces reader to basic knowledge of mergers and acquisitions theory, the reasons behind the transactions and a brief history of mergers and acquisitions. Second, the factors affecting the acquisition performance are being discussed and perspectives given for and against. Third, discussion is opened for gender diversity and its effects on mergers and acquisitions. Fourth, the empirical part of the thesis starts with the data and methodology description. Fifth, the results and impli-cations of empirical analyses are discussed.

The thesis finds that mergers and acquisitions do not yield abnormal returns. While acquirers’ CEO’s gender does not affect these returns, evidence of board gender diversity affecting the acquisition returns, is found.