Small firm CEOs and outside directorships: tenure, demonstration and synergy effects
Cowling, Marc
Date: 1 March 2008
Journal
Manchester School
Publisher
Wiley
Publisher DOI
Related links
Abstract
We investigate the determinants of the number of outside directorships held by CEOs
of small, unquoted companies. CEOs of growth orientated firm’s hold more outside
directorships, as do CEOs of more complex firms. This reflects the need to acquire
external resources and develop internal human capital. The evidence also supports
CEO ...
We investigate the determinants of the number of outside directorships held by CEOs
of small, unquoted companies. CEOs of growth orientated firm’s hold more outside
directorships, as do CEOs of more complex firms. This reflects the need to acquire
external resources and develop internal human capital. The evidence also supports
CEO life‐cycle theories in that longer tenured CEOs hold more outside directorships. It
is also likely that once a CEO has crossed the threshold of taking her first outside
directorship (and many never do) then this sends a signal to other boards that the
individual is now in the market for other directorships and of the requisite quality.
Synergy effects were also evident in particular industries. On balance there was little
evidence of perquisite consumption and some evidence that boards do have a
disciplining role.
Management
Faculty of Environment, Science and Economy
Item views 0
Full item downloads 0