Abstract
Based on a novel worldwide data set covering listed firms from 54 countries we study the effect of director busyness. Hypothesizing that there are superstar directors in the pool of directors, which eventually end up with multiple directorships, we argue that – in contrast to local positions – distant board positions likely reflect superior director skills. Calculating travel distances and identifying exogenous retirements, we find that busy directors with high (low) travel distance are beneficial (detrimental) to firm value. Interestingly, our data suggests that these superstar directors improve monitoring, but are not necessarily better advisors.
| Original language | English |
|---|---|
| Publication date | 2018 |
| Number of pages | 54 |
| Publication status | Published - 2018 |
| Event | 2018 Financial Management Association European Conference - University of Agder, Kristiansand, Norway Duration: 13 Jun 2018 → 15 Jun 2018 http://www.fmaconferences.org/Norway/NorwayProgram.htm |
Conference
| Conference | 2018 Financial Management Association European Conference |
|---|---|
| Location | University of Agder |
| Country | Norway |
| City | Kristiansand |
| Period | 13/06/2018 → 15/06/2018 |
| Internet address |
Keywords
- Corporate governance
- Boards
- Busyness
- Firm value
Cite this
Rapp, M. S., Schmid, T., & Urband, D. (2018). Busy Directors with Distant Board Positions: Superstar Directors or Lost in Translation?. Paper presented at 2018 Financial Management Association European Conference, Kristiansand, Norway. http://www.fmaconferences.org/Norway/Papers/Rapp_Schmid_Urban-BoardBusyness-2017-12-01.pdf