Abstract

The aim of this paper is to study the relationship between the educational diversity of the board directors and the acquirer’s cumulative abnormal return associated with the announcement of a M&A. The results show that the cumulative abnormal return is positively related to educational diversity, however the model exhibits significant heteroscedasticity and therefore the results cannot be accepted as conclusive. Several attempts at fixing the heteroscedasticity failed and statistically appropriate model relating the cumulative abnormal returns to the explanatory variables is yet to be found.