A Study Of Returns At Shareholders Of Bidding Firms

In a study of returns to shareholders of bidding firms in tender offers, it was reported that average announcement date for abnormal returns was significantly less negative for bidding firms where half of the board was composed of independent directors from outside. There was a positive reaction from market after the announcement of poison pills when the board was composed majorly of outside directors and negative when it was not (Brickely et al., 1994). Examination of the link between outside directors on board and shareholders wealth provides significantly positive evidence as on average excess returns are directly related to the appointment of the outside directors in the board by the management. This suggests that outside independent†¦show more content†¦This provides the evidence of characteristics of effective ACs that can enhance the quality of reported earnings. The recommended and improved management and governance structures lead towards better control and manageme nt practices. This will further lead to the positive improvements in the corporate performance. 3.0 Research Methods and Research Design This section will demonstrate the research approach and design used to complete the purposed study. It will also highlight the sources used for data collection, to analyse and evaluate the evidence regarding research question. 3.1 Research Design This section illustrates the research approach used to collect and analyse the evidence for this research. There are two main approaches to a research problem, qualitative research and quantitative research. Quantitative is predominantly used as a synonym for any data collection technique (such as a questionnaire) or data analysis procedure (such as graphs or statistics) that generates or uses numerical data. In contrast, qualitative is used for any data collection technique (such as an interview) or data analysis procedure (such as categorising data) that generates or uses non-numerical data (Saunders, et al., 2007). Qualitative research includes techniques like case studies, interviews, personal observations and focus groups. This study will be following a mix approach i.e. will be using both