Showing 1 - 8 of 8
Persistent link: https://www.econbiz.de/10012612506
We examine dispersion in director characteristics within a board. Directors with different skills can augment the board's overall expertise and decision making flexibility, but they also face coordination problems. Empirically, the negative effect of dispersion on value prevails. To establish...
Persistent link: https://www.econbiz.de/10013090803
Persistent link: https://www.econbiz.de/10009755355
Empirical evidence on the relations between board independence and board decisions and firm performance is generally confounded by serious endogeneity issues. We circumvent these endogeneity problems by demonstrating the strong impact of the local director labor market on board composition....
Persistent link: https://www.econbiz.de/10012857398
While the fraction of independent directors has been widely used as a proxy for monitoring effectiveness of the board, there are no clear-cut measures that capture the advising effectiveness of the board. We develop and validate two new measures of board advising: (i) per-outside-director...
Persistent link: https://www.econbiz.de/10013066659
In this paper, we survey the literature on corporate boards, with a specific focus on its primary functions of monitoring and advising the CEO. In particular, we consider how board structure and the individual directors’ characteristics, skill sets, connections, busyness, and incentives affect...
Persistent link: https://www.econbiz.de/10014352992
Persistent link: https://www.econbiz.de/10010371386
We argue that not all independent directors are equally effective in monitoring top management. Specifically, directors who are appointed by the CEO are likely to have stronger allegiance to the CEO and will be weaker monitors. To examine this hypothesis, we propose and empirically deploy two...
Persistent link: https://www.econbiz.de/10013069089