Are all non-independent non-executive directors undesirable? Directors non-independence and firm value in UK

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Are all non-independent non-executive directors undesirable? Directors non-independence and firm value in UK

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dc.contributor.author Shaukat, Amama en_US
dc.date.accessioned 2012-02-28T12:16:40Z en_US
dc.date.accessioned 2013-03-19T15:47:10Z
dc.date.issued 2011 en_US
dc.description.abstract While prior studies treat non-executives as a homogenous group, this paper focuses on heterogeneity of this group. It examines the link between firm value and the specific characteristics of non-executives that render them non-independent (and by implication undesirable) as per the UK Code of Corporate Governance. It finds that contrary to the Code’s implications, the presence of past employees on the board, has an economically as well as statistically strong positive association with firm value. This result suggests that it is not just formal ‘independence’, but a combination of ‘independence of mind’ and ‘firmspecific’ knowledge that perhaps past employees best possess, that matters for enhancing effective board decision making and hence firm value. Moreover, only some of the other dimensions of directors’ non-independence are negatively associated with firm value. The results suggest that some of the Code recommendations regarding directors’ independence may actually not benefit shareholders. en_GB
dc.identifier.uri http://hdl.handle.net/10036/3450 en_US
dc.language.iso en en_GB
dc.subject corporate governance en_GB
dc.subject board of directors en_GB
dc.subject non-executive directors en_GB
dc.subject independent directors en_GB
dc.title Are all non-independent non-executive directors undesirable? Directors non-independence and firm value in UK en_GB
dc.type Article en_GB
dc.date.available 2012-02-28T12:16:40Z en_US
dc.date.available 2013-03-19T15:47:10Z
exeter.contacts.depositing-owner-email Shaukat, Amama <A.Shaukat@exeter.ac.uk> en_US
exeter.contacts.impersonator-email Overy, Patrick <P.C.Overy@exeter.ac.uk> en_US
exeter.contacts.owner-email Shaukat, Amama <A.Shaukat@exeter.ac.uk> en_US
dc.description Conference paper; submitted for publication as journal article en_GB
pubs.organisational-data /Symplectic Joint Venture en_US
pubs.organisational-data /Symplectic Joint Venture/Exeter en_US
pubs.organisational-data /Symplectic Joint Venture/Exeter/All Exeter Users en_US
pubs.organisational-data /Symplectic Joint Venture/Exeter/University of Exeter Business School en_US
pubs.organisational-data /Symplectic Joint Venture/Exeter/University of Exeter Business School/Accounting en_US
pubs.organisational-data /Symplectic Joint Venture/Exeter/University of Exeter Business School/All Academic Staff (UEBS) en_US
pubs.organisational-data /Symplectic Joint Venture/Exeter/University of Exeter Business School/All Researchers (R+T&R) (UEBS) en_US
pubs.organisational-data /Symplectic Joint Venture/Exeter/University of Exeter Business School/Teaching & Research (T&R) (UEBS) en_US


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