Weir, Charlie and Talavera, Oleksandr and Muravyev, Alexander (2011) 'Performance effects of appointing other firms' executive directors.', Working Paper. Durham University, Durham.
This paper studies the relationship between directors’ human capital and the company’s performance. In particular, we focus on the effect on performance of non-executive directors who are also executive directors in other firms. We find a positive relationship between the presence of these non-executive directors and the accounting performance of the appointing company. The effect is stronger if these directors are also executive directors at companies that are performing well. Additionally, the similarity of industry plays a role. The results support the view that appointing firms benefit from the human capital of the appointee.
|Item Type:||Monograph (Working Paper)|
|Keywords:||Human capital, Executive directors, Non-executive directors, Company performance, JEL classifcation: G34 G39.|
|Full text:||PDF - Published Version (590Kb)|
|Publisher Web site:||http://www.dur.ac.uk/business/faculty/working-papers/|
|Record Created:||07 Dec 2012 10:36|
|Last Modified:||07 Dec 2012 12:36|
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