Performance effects of appointing other firms’ executive directors to corporate boards: an analysis of UK firms

Alexander Muravyev (), Oleksandr Talavera () and Charlie Weir ()
Authors registered in the RePEc Author Service: Александр Муравьев

Review of Quantitative Finance and Accounting, 2016, vol. 46, issue 1, 25-45

Abstract: This paper studies the effect on company performance of appointing non-executive directors that are also executive directors in other firms. The analysis is based on a new panel dataset of UK companies over 2002–2008. Our findings suggest a positive relation between the presence of these non-executive directors and the accounting performance of the appointing companies. The effect is stronger if these directors are executive directors in firms that are performing well. We also find a positive effect when these non-executive directors are members of the audit committee. Overall, our results are broadly consistent with the view that non-executive directors that are executives in other firms contribute to both the monitoring and advisory functions of corporate boards. Copyright Springer Science+Business Media New York 2016

Keywords: Executive directors; Non-executive directors; Company performance; G34; G39 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (6)

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Working Paper: Performance Effects of Appointing Other Firms' Executive Directors to Corporate Boards: An Analysis of UK Firms (2014)
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DOI: 10.1007/s11156-014-0460-6

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