Board diversity and its effects on corporate acquisitions.

Abstract: The aim of the study is to determine how diversification on the board of directors, in terms of gender, nationality, and age, affects the acquisition intensity of listed firms on the Swedish Large Cap. The theoretical framework is based on Social identity theory, Agency theory and similar previous studies on the impact of board diversity. The study is based on secondary data, is quantitative and derives from a deductive approach. The results of the multiple regressions have been analyzed together with theories and compared to previous similar research. The empirical foundation is based on data gathered from 334 cross-sectional observations on the Swedish Large Cap between 2011 and 2015. Three independent variables together with three control variables have been tested. The study finds statistical significance, on the 10% level, of a negative relationship between age diversity and acquisition attempts. This variable was divided into four generations and the result shows that for every new generation introduced to the board the firm performs 0.346 less acquisition attempts. The authors found no significance in the relation between acquisition attempts and gender- and nationality diversity.