Chapter 2: Board Interlocks and M&As

Extending the proposition that boards of directors influence firms’ mergers and acquisitions (M&As), studies have investigated how board interlocks – network ties formed by directors — may shape M&A processes and outcomes. While board interlocks and M&As are two streams of research, each underpinned by voluminous studies, their cross-fertilization has been relatively limited. In this chapter, the authors take stock of prior research investigating the relationship between board interlocks and M&As. Specifically, emphasizing the network features of board interlocks, the authors highlight a connection aspect and a structure aspect of board interlocks in appreciating their effects during pre-acquisition and post-acquisition phases. Based on this framework, the authors then lay out a research agenda that can further bridge board interlocks with M&As. Overall, this chapter endeavors to integrate and expand our knowledge on the acquisition implications of board interlocks.