The influence of corporate governance on the success of M&A transactions: An empirical analysis of German companies

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstact

This study investigates how corporate governance mechanisms — such as board size, independence, and insider ownership — impact the success of mergers and acquisitions (M&A) among German companies. Using cumulative abnormal returns (CAR) as a measure of shareholder value, the study identifies the influence of various governance structures on M&A performance. The results indicate that insider ownership and multiple board mandates are positively associated with M&A success, while larger boards may impede integration efficiency. This research addresses gaps in German M&A literature and provides actionable insights for both scholars and practitioners (Ortiz & Schalkowski, 2015; Tsai, 2008).

Keywords: Corporate Governance, Mergers and Acquisitions (M&A), Insider Ownership, Board Size and Independence, Event Study Methodology

JEL Classification: G32, G34, L25

Received: 12.11.2024
Accepted: 18.11.2024

How to cite: Ulrich, P., & Michalke, P. (2025). The influence of corporate governance on the success of M&A transactions: An empirical analysis of German companies. In M. Pazarskis, A. Kostyuk, V. Santolamazza, & P. Capuano (Eds.), Corporate governance: Scholarly research and practice (pp. 107–111). Virtus Interpress. https://doi.org/10.22495/cgsrapp21