The Determinants and Performance Impact of Outside Board Leadership
Temple University - Department of Accounting
University of Nevada, Las Vegas - Department of Finance
University of Nevada, Reno
December 9, 2014
Journal of Financial and Quantitative Analysis (JFQA), Forthcoming
Outside board chairs are more likely in firms that are smaller, have greater stock volatility and R&D intensity, have a lower proportion of inside directors and less institutional ownership, and when CEOs have shorter tenure and lower ownership. We also find the existence of an outside chair associated with geographical and industry norms. An outside chair is positively associated with firm performance, a finding robust to various estimation methods including event study and multivariate analyses incorporating controls for endogeneity, as well as market and accounting measures of performance. We note however, the outside chair-firm performance relationship varies with firm characteristics.
Number of Pages in PDF File: 60
Date posted: March 17, 2009 ; Last revised: January 14, 2015
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