| Item Type |
Journal paper
|
| Abstract |
We investigate whether investor reactions to the announcement of a new outside director appointment significantly depend upon the director's experience in the appointing firm's industry. Our sample includes 688 outside director appointments to boards of S&P 500 companies from 2005 to 2010. We find significantly higher announcement returns upon appointments of experienced versus inexperienced directors. To alleviate endogeneity concerns, we use the deaths of 200 directors holding 280 outside directorships as an identification strategy and find significantly more negative announcement returns associated with the deaths of experienced versus inexperienced directors. However, while our results are robust to accounting for time-fixed unobservable director and firm characteristics, we still cannot completely rule out endogenous firm-director matching driving our results. |
| Authors |
von Meyerinck, Felix; Oesch, David & Schmid, Markus |
| Journal or Publication Title |
Financial Management |
| Language |
English |
| Keywords |
Board of directors; Director appointments; Director deaths; Director skills and experi-ence; Corporate governance |
| Subjects |
business studies |
| HSG Classification |
contribution to scientific community |
| Refereed |
Yes |
| Date |
2016 |
| Publisher |
Financial Management Association |
| Place of Publication |
Tampa |
| Series Name |
SoF Working Paper Series |
| Volume |
45 |
| Number |
1 |
| Page Range |
207-237 |
| Number of Pages |
30 |
| ISSN |
0046-3892 |
| ISSN-Digital |
1755-053X |
| Publisher DOI |
https://doi.org/10.1111/fima.12089 |
| Depositing User |
Prof. Dr. Markus Schmid
|
| Date Deposited |
07 Dec 2012 13:44 |
| Last Modified |
20 Jul 2022 17:14 |
| URI: |
https://www.alexandria.unisg.ch/publications/218552 |
Is Director Industry Experience Valuable?
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