Herding Behavior and Board Effectiveness

In this study, I argue that independent directors tend to follow a board leader. I theoretically analyze this behavior and show that under normal circumstances there is a tendency for board members to herd. Herding is inefficient because the information contained in the signals that directors’ receive is not aggregated and therefore it is wasted. Herding may be one of the reasons that no empirical relation exists between board composition and firm performance

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Year of publication:	2011
Authors:	Gonzalez, Maximiliano
Publisher:	[S.l.] : SSRN
Subject:	Vorstand \| Executive board \| Herdenverhalten \| Herding \| Corporate Governance \| Corporate governance \| Theorie \| Theory

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Extent:	1 Online-Ressource (20 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: ACADEMIA: Revista LatinoAmericana de Administracion, Vol. 36, pp. 82-100, 2006 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 31, 2006 erstellt
Classification:	G3 - Corporate Finance and Governance ; G38 - Government Policy and Regulation
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014186334