Abstract
We examine directors that serve on boards of multiple firms and argue that the distance between corporate headquarters can help to identify “superstar directors”. Based on a novel board dataset covering 35,000 firms across 54 countries, we identify plausibly exogenous retirements of busy directors to show that those serving for distant firms increase firm value. Part of the effect can be explained by superior director-firm matching. We further show that superstar directors improve monitoring, but are not necessarily better advisors.
| Original language | English |
|---|---|
| Publication date | 2017 |
| Number of pages | 57 |
| Publication status | Published - 2017 |
| Event | 2017 Financial Management Association European Conference - Lisbon School of Economics & Management (ISEG), Universidade de Lisbo, Lissabon, Portugal Duration: 22 Jun 2017 → 23 Jun 2017 http://www.fmaconferences.org/Lisbon/LisbonProgram.htm |
Conference
| Conference | 2017 Financial Management Association European Conference |
|---|---|
| Location | Lisbon School of Economics & Management (ISEG), Universidade de Lisbo |
| Country/Territory | Portugal |
| City | Lissabon |
| Period | 22/06/2017 → 23/06/2017 |
| Internet address |
Keywords
- Corporate governance
- Boards
- Busyness
- Firm value