Business School publications

Permanent URI for this collection

https://hdl.handle.net/2440/1077

Browse

Browsing Business School publications by Author "Abor, J."

Now showing 1 - 3 of 3
  • No Thumbnail Available
    ItemMetadata only
    Corporate governance and restructuring activities following completed bids
    (Blackwell Publ Ltd, 2011) Abor, J.; Graham, M.; Yawson, A.
    Manuscript Type: EmpiricalResearch Question/Issue: We examine the extent to which effective corporate governance impacts three restructuring choices following completed acquisitions - significant adjustment to workforce; sale of subsidiaries; and further acquisitions. We also investigate the relative firm performance in the post-restructuring period for the three respective options examined.Research Findings/Insights: Based on a sample of 649 US firms between the period 1991 and 2009, we find support for the assertion that corporate governance impacts layoffs and further acquisitions. We, however, find no evidence to support a measurable governance effect on divestiture likelihood. In examining the post-acquisition performance following restructuring, we find no significant difference in performance between acquirers that made further acquisitions and those that did not. There is evidence, however, suggesting that acquirers who laid off workers and those that divested assets performed significantly poorer relative to a comparable group of acquirers.Theoretical/Academic Implications: This study adds to the empirical literature on the relation between governance and restructuring choices. We provide evidence on the impact of governance on restructuring choices that has not been documented in the academic literature. An implication of this study is that performance in post-restructuring period would not necessarily be enhanced even when governance exerts positive influences on restructuring choice.Practitioner/Policy Implications: Our empirical results demonstrate the relative importance of corporate governance in organizational strategic choices. This study offers insights to stakeholders interested in enhancing governance structures to influence restructuring decisions following completed bids. © 2010 Blackwell Publishing Ltd.
  • No Thumbnail Available
    ItemMetadata only
    Domestic banking sector development and cross border mergers and acquisitions in Africa
    (Elsevier BV, 2012) Agbloyor, E.; Abor, J.; Adjasi, C.; Yawson, A.
    Recently, economists have started taking a closer look at cross border mergers and acquisitions (M&As) due to its phenomenal rise in the past two decades. This study investigates the relation between banking sector development and cross M&As in Africa. Our sample consists of 11 African countries with data covering the period, 1993-2008. We use a Baltagi panel instrumental variable Error Component Two Stage Least Squares (EC2SLS) estimator with the Baltagi-Chang estimators of the variance components to deal with endogeneity. The results of the study indicate that banking sector development promotes cross border M&A activity in Africa. We also document evidence suggesting that cross border M&A activity drives banking sector development in Africa. Overall, our evidence suggests a two-way causation between banking sector development and cross border M&As. © 2012 Production and hosting by Elsevier B.V.
  • No Thumbnail Available
    ItemMetadata only
    Exploring the causality links between financial markets and foreign direct investment in Africa
    (J A I Press Inc, 2013) Agbloyor, E.; Abor, J.; Adjasi, C.; Yawson, A.
    This paper sets out to explore the causality links between financial markets and foreign direct investment (FDI) in Africa. We use proxies for the banking sector and stock market to capture financial market development. We run separate estimations for the banking and stock market samples. Therefore, the sample size differs based on the sample being estimated. The banking sample is made up of 42 countries, whilst the stock market sample is made up of 16 countries. We use data covering the period 1970-2007 for the bank sample whilst for the stock market sample we use data covering the period 1990-2007. We use a 2SLS panel instrumental variable approach to obviate simultaneous causality bias. Our results suggest that a more advanced banking system can lead to more FDI flows. Also higher FDI flows can lead to the development of the domestic banking system. Countries with better-developed stock markets are likely to attract more FDI. We also find that FDI flows can lead to the development of the domestic stock market. Our results imply significant complementarities and feedback between financial markets and FDI in Africa. © 2012 Elsevier B.V..