Time to complete the due diligence phase in M&A: impact of directors with supply chain industry experience

Purpose Through the lenses of executive background, this paper aims to examine how directors with supply chain experience (DSCs) to affect time to complete the due diligence phase in M&A. Design/methodology/approach Using a sample of 235 China A-listed firm-year observations from 2011 to 2020, this paper investigates the relationship between DSCs and M&A due diligence time by using ordinary least squares regression. Findings Our findings reveal that acquirers having DSCs can reduce transaction due diligence time, but it plays a minimal role in due diligence review time. In addition, based on upper echelons theory, this paper further examines that board members with financial backgrounds negatively moderate the main effect, while board members with overseas backgrounds play a positive moderating role. Originality/value We focus on DSCs, analyzing and explaining how DSCs affect time to complete the due diligence phase in M&A, which extends the connotation of interlocking directors and enriches the study related to factors influencing M&A due diligence time.