Issues of gender within the public interest sphere in South African merger reviews

Abstract

Orientation: Issues of gender are prominent in the global development agenda. Although South African competition law mandates that public interest considerations must be considered as part of merger decisions, gender considerations are not explicitly included in this process.
Research purpose: This study’s two-fold objective is to assess whether mergers influence gender distribution on company boards and in executive management and whether any observed changes could be linked to specific characteristics of the mergers.
Motivation for the study: Gender diversity remains overlooked in merger and acquisition (M&A) policy research despite its importance in the global development agenda, motivating this investigation.
Research approach/design and method: The study employs a quantitative approach using secondary, pooled cross-sectional data from 80 South African mergers approved between 2010 and 2019, collected from various company financial statements and integrated annual reports, focusing on pre- and post-merger gender composition in management and board positions. Descriptive statistics, equality of means tests and ordinary least squares regressions are applied to analyse the impact of mergers on gender diversity.
Main findings: The results show a modest but statistically significant increase in female board representation post-merger, particularly in cases where the acquiring firm was local rather than international. However, changes in female representation in executive management roles post-merger were generally not significant.
Practical/managerial implications: The results highlight the need for policy interventions to promote female representation in corporate leadership, setting a precedent for broader diversity-focused policies in the Global South.
Contribution/value-add: The study contributes to the limited literature on issues of gender diversity in M&A policy (a virtually unexplored area in the South African literature) from the perspective of the Global South.