The value of director reputation: Evidence from outside director appointments

Fabian Gogolin, Mark Cummins and Michael Dowling

Finance Research Letters, 2018, vol. 27, issue C, 266-272

Abstract: This study examines the role of director reputation using a sample of outside director appointments. Relative to existing literature, we focus on outside director appointments involving CEO award winners. Exploiting the award-induced change in a director’s reputation, we are able to show that investors react more positively to the appointment of outside directors they perceive as more reputable. We find that this ’reputation premium’ is approximately 2%, and robust across a range of subtests that control for a wide range of possibly confounding influences.

Keywords: Director reputation; Director appointment; Announcement returns (search for similar items in EconPapers)
JEL-codes: G30 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:27:y:2018:i:c:p:266-272

DOI: 10.1016/j.frl.2018.03.012

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