Boardroom centrality and firm performance

被引:435
作者
Larcker, David F. [1 ]
So, Eric C. [2 ]
Wang, Charles C. Y. [3 ]
机构
[1] Stanford Univ, Grad Sch Business, Rock Ctr Corp Governance, Stanford, CA 94305 USA
[2] MIT, Cambridge, MA 02139 USA
[3] Harvard Univ, Sch Business, Boston, MA 02163 USA
关键词
Board of director networks; Analyst forecasts; Market efficiency; CORPORATE GOVERNANCE; STOCK RETURNS; NETWORKS; UNCERTAINTY; COMPENSATION; CONNECTIONS; INFORMATION; INTERLOCKS; DEPENDENCE; MATTERS;
D O I
10.1016/j.jacceco.2013.01.006
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Firms with central boards of directors earn superior risk-adjusted stock returns. A long (short) position in the most (least) central firms earns average annual returns of 4.68%. Firms with central boards also experience higher future return-on-assets growth and more positive analyst forecast errors. Return prediction, return-on-assets growth, and analyst errors are concentrated among high growth opportunity firms or firms confronting adverse circumstances, consistent with boardroom connections mattering most for firms standing to benefit most from information and resources exchanged through boardroom networks. Overall, our results suggest that director networks provide economic benefits that are not immediately reflected in stock prices. (C) 2013 Published by Elsevier B.V.
引用
收藏
页码:225 / 250
页数:26
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