| Pub. Date | : Dec., 2018 |
|---|---|
| Product Name | : The IUP Journal of Business Strategy |
| Product Type | : Article |
| Product Code | : IJBS41812 |
| Author Name | : Purva Kansal and John Bansal |
| Availability | : YES |
| Subject/Domain | : Management |
| Download Format | : PDF Format |
| No. of Pages | : 18 |
The paper reviews the literature on the interface between Corporate Governance (CG) and Mergers and Acquisitions (M&As). In particular, it aims to highlight the themes that have been explored by the researchers in the area of CG-M&A literature and to identify the potential areas of research in CG-M&A. The review is based on CG-M&A research published during 2001 to 2018 and indexed on Google Scholar. The articles have been classified according to the themes to identify the work in CG-M&A domain in the extant literature. The study found that during 2001-2018, thirty research articles had been published researching the interface between corporate governance and M&A. Most of the CG-M&A research has been done in the developed markets. A majority of the articles have analyzed the impact of board characteristics on M&A performance. Other themes include the focus of CG in different countries and its impact on M&As, CG and cross-border M&As, anti-takeover provisions as a dimension of CG, the relationship of CG, accounting standards, and legal protection with M&As, relationship of CG with the firms' performance around M&As, and synergies in M&As due to CG practices. The study highlights the emerging areas of research in CG-M&A. The paper also identifies lesser explored areas in CG-M&A research and provides suggestions for future research. The paper is useful to researchers and academicians working in the area of corporate governance and M&A.
The 21st century has led to the emergence of Corporate Governance (CG) regulations. CG norms started gaining ground as a reaction to various accounting frauds and corporate scandals. These corporate scandals have led either to the emergence or improvement of the CG regulations. In the US, Enron and WorldCom scams led to the enactment of Sarbanes Oxley Act, 2002. In India, Satyam scam forced the Ministry of Corporate Affairs to revise the CG regulations to ensure protection to the shareholders. Similarly, corporate failures of HIH and One.Tel in Australia led to the CLERP 9 reforms. Failure of Parmalat in Italy forced the country to take a regulatory interest.