Military independent directors and merger activity

Abstract

In this article, we examine the relation between independent directors with past military service and merger activity. We find that firms with a greater proportion of independent directors with military experience complete fewer mergers, and the deals are of smaller value. Our results are robust to instrumental variable estimation. The reduction in merger and acquisition activity is concentrated in firms with weak CEOs, suggesting independent directors with military service do not improve firm agency problems.

Department(s)

Finance, Economics and Risk Management

Document Type

Article

DOI

10.1111/jfir.12401

Publication Date

12-1-2024

Journal Title

Journal of Financial Research

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