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• Main Authors: Ya-Yun Kao, 高雅紜
• Other Authors: Wei-Hsien Li
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/62418617768631747513

碩士 === 國立中央大學 === 財務金融學系 === 103 === Prior studies demonstrate that complex firms, such as diversified firms, have greater advising needs than simple firms. Thus, they tend to have larger boards with more outside directors. This paper focuses on the relationship between outside directors' industry experience and the acquisition performance in diversifying takeovers. I hypothesize that acquirer’s outside directors’ previous experience in the industry of the target firm, have a positive effect on acquisition performance. We find that outside directors' industry experience as executive directors in target industry have positive effects on abnormal announcement returns. We also find that industry-expert outside directors can help acquirer pay a lower premium for the target in negotiation process. The effects of industry-expert outside directors remain after we control for the industry experience of inside directors and the industry experience of CEOs, and change the definition of industry experience or the definition of diversifying takeover. These findings suggest that outside directors with industry experience play an important role in diversifying takeovers. More importantly, only the highly relevant experience, the experience as executive directors in target industry, has the positive effects on acquisition performance.