CEO Attributes, Board Composition, and Acquirer Value Creation: A Canadian Study


  • The authors wish to thank Rick Hackett (editor-in-chief) and the two anonymous reviewers from the Canadian Journal of Administrative Sciences for their comments and suggestions. This research was carried out with financial support from the Professorship in Strategic Financial Information of the Quebec Ordre des CGA (the Quebec Interprofessional Council) and from Telfer School of Management's research fund.

Ameur Boujenoui, Telfer School of Management, 55 Laurier E. Ottawa ON K1N 6 N5 Canada. Email:


We examined CEO attributes, board composition, and ownership structure for their relationship to the share performance of the acquiring company around the acquisition announcement. Based on 273 acquisitions by Canadian firms from 1998 through 2002, we have shown that the levels of CEO and director ownership as well as the level of board independence were positively associated with the short-term financial performance of the acquirer. Board size was negatively related to value creation. Finally, cash-based deals and cross-border transactions were also positively related to increases in shareholder wealth for the acquirer. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.


Cette étude examine la relation entre, d'une part, les attributs des PDG, la composition du conseil d'administration et la structure du capital et, d'autre part, la performance des actions de la société acheteuse au moment de l'annonce de l'acquisition. En se basant sur 273 acquisitions réalisées par les firmes canadiennes de 1998 à 2002, l'étude montre que les niveaux de participation des PDG et des directeurs ainsi que le niveau d'indépendance du conseil d'administration sont positivement reliés à la performance financière à court terme de la société acquéreuse. La taille du conseil d'administration quant à elle est négativement reliée à la création de la valeur. Enfin, les transactions payées en espéces et transfrontalières sont aussi positivement reliées à l'accroissement de la richesse des actionnaires de l'acquéreur. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.