We are advertis’d by our loving friends: CEO‐connected directors

Junho Park

Accounting and Finance, 2022, vol. 62, issue 3, 3189-3238

Abstract: This study examines the effect of CEO‐connected directors on firm value. Empirical analyses are conducted on US firms between 1999 and 2016 using a local supply of directors as an instrumental variable. CEO‐connected directors contribute to the firm by resolving information asymmetry. I find that firms with more CEO‐connected directors produce more innovative outputs than those with fewer CEO‐connected directors. However, such directors exacerbate managerial entrenchment. Hence, it is necessary to establish rules for the board of directors that reflect firm‐specific characteristics, such as information transparency.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/acfi.12885

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:acctfi:v:62:y:2022:i:3:p:3189-3238

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391

Access Statistics for this article

Accounting and Finance is currently edited by Robert Faff

More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().