Performance effects of appointing other firms' executive directors to corporate boards: an analysis of UK firms.
Muravyev, Alexander; Talavera, Oleksandr; Weir, Charlie
This paper studies the effect on company performance of appointing non-executive directors that are also executive directors in other firms. The analysis is based on a new panel dataset of UK companies over 2002-2008. Our findings suggest a positive relation between the presence of these non-executive directors and the accounting performance of the appointing companies. The effect is stronger if these directors are executive directors in firms that are performing well. We also find a positive effect when these non-executive directors are members of the audit committee. Overall, our results are broadly consistent with the view that non-executive directors that are executives in other firms contribute to both the monitoring and advisory functions of corporate boards.
|Journal Article Type||Article|
|Publication Date||Jan 30, 2016|
|Journal||Review of quantitative finance and accounting|
|Publisher||Springer (part of Springer Nature)|
|Peer Reviewed||Peer Reviewed|
|Institution Citation||MURAVYEV, A., TALAVERA, O. and WEIR, C. 2016. Performance effects of appointing other firms' executive directors to corporate boards: an analysis of UK firms. Review of quantitative finance and accounting [online], 46(1), pages 25-45. Available from: https://doi.org/10.1007/s11156-014-0460-6|
|Keywords||Executive directors; Nonexecutive directors; Company performance|
MURAVYEV 2016 Performance effects of appointing