Busy Directors with Distant Board Positions: Superstar Directors or Lost in Translation?

Marc Steffen Rapp, Thomas Schmid, Daniel Urband

Research output: Contribution to conferencePaperResearchpeer-review

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 languageEnglish
Publication date2018
Number of pages54
Publication statusPublished - 2018
Event2018 Financial Management Association European Conference - University of Agder, Kristiansand, Norway
Duration: 13 Jun 201815 Jun 2018
http://www.fmaconferences.org/Norway/NorwayProgram.htm

Conference

Conference2018 Financial Management Association European Conference
LocationUniversity of Agder
CountryNorway
CityKristiansand
Period13/06/201815/06/2018
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.
Rapp, Marc Steffen ; Schmid, Thomas ; Urband, Daniel. / Busy Directors with Distant Board Positions : Superstar Directors or Lost in Translation?. Paper presented at 2018 Financial Management Association European Conference, Kristiansand, Norway.54 p.
@conference{ad9f4b23184a4c268ad589e27d32f0eb,
title = "Busy Directors with Distant Board Positions: Superstar Directors or Lost in Translation?",
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.",
keywords = "Corporate governance, Boards, Busyness, Firm value, Corporate governance, Boards, Busyness, Firm value",
author = "Rapp, {Marc Steffen} and Thomas Schmid and Daniel Urband",
year = "2018",
language = "English",
note = "null ; Conference date: 13-06-2018 Through 15-06-2018",
url = "http://www.fmaconferences.org/Norway/NorwayProgram.htm",

}

Rapp, MS, Schmid, T & Urband, D 2018, 'Busy Directors with Distant Board Positions: Superstar Directors or Lost in Translation?' Paper presented at, Kristiansand, Norway, 13/06/2018 - 15/06/2018, .

Busy Directors with Distant Board Positions : Superstar Directors or Lost in Translation? / Rapp, Marc Steffen; Schmid, Thomas; Urband, Daniel.

2018. Paper presented at 2018 Financial Management Association European Conference, Kristiansand, Norway.

Research output: Contribution to conferencePaperResearchpeer-review

TY - CONF

T1 - Busy Directors with Distant Board Positions

T2 - Superstar Directors or Lost in Translation?

AU - Rapp, Marc Steffen

AU - Schmid, Thomas

AU - Urband, Daniel

PY - 2018

Y1 - 2018

N2 - 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.

AB - 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.

KW - Corporate governance

KW - Boards

KW - Busyness

KW - Firm value

KW - Corporate governance

KW - Boards

KW - Busyness

KW - Firm value

M3 - Paper

ER -

Rapp MS, Schmid T, Urband D. Busy Directors with Distant Board Positions: Superstar Directors or Lost in Translation?. 2018. Paper presented at 2018 Financial Management Association European Conference, Kristiansand, Norway.