Abstract

http://ssrn.com/abstract=1894776
 
 

References (56)



 
 

Citations (10)



 


 



Are Busy Boards Detrimental?


Laura Casares Field


Pennsylvania State University - Smeal College of Business

Michelle Lowry


Drexel University

Anahit Mkrtchyan


Northeastern University - D’Amore-McKim School of Business

November 20, 2012


Abstract:     
Busy directors have been widely criticized as being ineffective. However, we hypothesize that busy directors offer advantages for many firms. While busy directors may be less effective monitors, their experience and contacts arguably make them excellent advisors. Among IPO firms, which have minimal experience with public markets and likely rely heavily on their directors for advising, we find busy boards to be common and to contribute positively to firm value. Moreover, these positive effects of busy boards extend to all but the most established firms. Benefits are lowest among Forbes 500 firms, which likely require more monitoring than advising.

Number of Pages in PDF File: 55

Keywords: Corporate governance, IPO, Board of directors, venture capital

JEL Classification: G24, G34, K22

working papers series


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Date posted: July 25, 2011 ; Last revised: November 20, 2012

Suggested Citation

Field, Laura Casares and Lowry, Michelle and Mkrtchyan, Anahit, Are Busy Boards Detrimental? (November 20, 2012). Available at SSRN: http://ssrn.com/abstract=1894776 or http://dx.doi.org/10.2139/ssrn.1894776

Contact Information

Laura Casares Field
Pennsylvania State University - Smeal College of Business ( email )
609D BAB I
University Park, PA 16802
United States
818-865-1483 (Phone)
818-865-3362 (Fax)
Michelle B. Lowry (Contact Author)
Drexel University ( email )
Philadelphia, PA 19104
United States
215-895-6070 (Phone)
Anahit Mkrtchyan
Northeastern University - D’Amore-McKim School of Business ( email )
360 Huntington Ave.
Boston, MA 02115
United States
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