Authors : Dr. Beth Wangari Kariuki

Volume/Issue : Volume 9 - 2024, Issue 11 - November

Google Scholar : https://tinyurl.com/4mfm6hr8

Scribd : https://tinyurl.com/mr2ts42z

DOI : https://doi.org/10.38124/ijisrt/IJISRT24NOV1077

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This study investigated the impact of board characteristics on short run cumulative abnormal return from mergers and acquisitions of listed firms in Eastern Africa securities markets. A sample of thirty (30) listed firms in Eastern Africa securities markets involved in mergers and acquisitions for a period of twenty (20) years between 1996 and 2015 was used. The study was guided by Myers and Majluf (1984) world of asymmetric information and the signaling model of Leland and Pyle (1977). Event study approach was used in computation of shot run cumulative abnormal return. Using cross sectional regression analysis, the study findings show that board size had a positive and significant impact on short run cumulative abnormal return from mergers and acquisitions of listed firms in Eastern Africa securities markets. The research findings however indicated that neither CEO / Chairman duality nor board independence had a significant impact on short run cumulative abnormal return from mergers and acquisitions of firms listed in Eastern Africa securities markets. The study concludes that firms that have small /optimum board size since they are associated with higher cumulative abnormal return from mergers and acquisitions.

Keywords : Mergers And Acquisitions, Short Run Cumulative Abnormal Return, Board Characteristics

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