The Transformation of Us Corporate Boards: 1997-2003

68 Pages Posted: 14 Jun 2004

See all articles by Vidhi Chhaochharia

Vidhi Chhaochharia

University of Miami - Department of Finance

Yaniv Grinstein

Cornell University - Samuel Curtis Johnson Graduate School of Management; Interdisciplinary Center (IDC) Herzliyah; European Corporate Governance Institute (ECGI)

Date Written: May 2004

Abstract

We study changes in board characteristics in U.S. public firms between 1997 and 2003. During that period boards become smaller and more independent, there are fewer cases of interlocking directorships and a decrease in multiple directorships. We also find changes in director background: an increase in the number of directors with financial background and a decrease in the number of directors with industrial background. Some of the changes occur already between 1997 and 2000. However, we find larger changes between 2000 and 2003, in conjunction with the corporate scandals and the new governance rules. We find little change in the financial stake of independent directors and in separating CEOs from the chairman position.

JEL Classification: G34, G38

Suggested Citation

Chhaochharia, Vidhi and Grinstein, Yaniv, The Transformation of Us Corporate Boards: 1997-2003 (May 2004). Available at SSRN: https://ssrn.com/abstract=556270 or http://dx.doi.org/10.2139/ssrn.556270

Vidhi Chhaochharia

University of Miami - Department of Finance ( email )

P.O. Box 248094
Coral Gables, FL 33124-6552
United States

Yaniv Grinstein (Contact Author)

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

Sage Hall
Ithaca, NY 14853
United States
607-255-8686 (Phone)
607-254-4590 (Fax)

Interdisciplinary Center (IDC) Herzliyah ( email )

P.O. Box 167
Herzliya, 46150
Israel

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

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