원문정보
초록
영어
The appointment of high value directors is associated with immediate positive market reaction, and the presence of high value directors in the board enhances long-run firm value. We identify the contribution of directors by alpha, or the abnormal risk-adjusted stock returns that are generated in other firms on whose boards they sit. We find that investors react positively when high alpha directors are appointed to high alpha boards. CEOs and individuals with MBA or CPA designations are more likely to be high value directors. We find that high alpha directors contribute significantly to firm value. For the typical firm, our parameter estimates imply that replacing a negative alpha director with a positive one is associated with a 8.59% improvement in firm value.
목차
1. Discussion and Hypotheses
2. Sample Selection, Methodology, and Data Description
2.1 Sample selection
2.2 Director alpha
2.3 Sample description
2.4 Determinants of director alpha
3. Director contribution, director busyness, and firm value
3.1. Announcement returns of high alpha directors
3.2 Relation of director contribution to firm value
3.3 CEO Turnover and Board alpha
4. Conclusion
REFERENCES