Going overboard? On busy directors and firm value |
| |
Authors: | George D Cashman Stuart L Gillan Chulhee Jun |
| |
Institution: | 1. Rawls College of Business, Texas Tech University, Lubbock, TX 79409, USA;2. Terry College of Business, University of Georgia, Athens, GA 30602, USA;3. Division of Business and Management, United International College, Tangjiawan, Zhuhai, Guangdong, PR China |
| |
Abstract: | The literature disagrees on the link between so-called busy boards (where many independent directors hold multiple board seats) and firm performance. Some argue that busyness certifies a director’s ability and that such directors are value enhancing. Others argue that “over-boarded” directors are ineffective and detract from firm value. We find evidence that (1) the disparate results in prior work stem from differences in both sample composition and empirical design, (2) on balance the results suggest a negative association between board busyness and firm performance, and (3) the inclusion of firm fixed effects dramatically affects the conclusions drawn from, and the explanatory power of, multivariate analyses. We also explore alternative empirical definitions of what constitutes a busy director and find that commonly used proxies for busyness perform well relative to more complex alternatives. |
| |
Keywords: | G30 G34 G39 |
本文献已被 ScienceDirect 等数据库收录! |
|