Board gender diversity and the acquisition announcement on Friday: evidence from Spain

Abstract

PurposeThis paper aims to examine the influence of the gender diversity in the corporate board on the decision of announcing a firm acquisition on Friday. Prior evidence found the phenomenon of investor inattention.Design/methodology/approachA sample of 252 cash-financed acquisitions conducted by listed Spanish firms from 2004 to 2018 is analysed. Probit regressions are used.FindingsFirms with greater gender diversity on the board are less likely to make acquisition announcements of listed targets on Friday, thus avoiding investor inattention. Women directors seem to provide higher quality information and are more concerned about investors.Originality/valueTo the best of the authors’ knowledge, this is the first study that analyses the role of women directors in the publication of information on Friday, so it complements studies on the disclosure of quality information by listed companies. The Spanish market is an adequate scenario to analyse the impact of women's participation in business decision-making because Spain was one of the first countries to legislate on gender diversity.