Year: 2015
Type: article
Abstract: We provide a new perspective to the multiple directorships literature, which focuses on outside directors. Inside directors, however, are important in both the boardroom and day‐to‐day operations of the firm. We find that any negative effect of director busyness is more pervasive for inside directors than for outside directors. Additional analysis reveals that bidding firms' acquisition announcement returns are decreasing in inside director board appointments, but there is no such effect for outside directors. These results highlight the importance of inside directors and demonstrate that firm performance can be compromised when they sit on multiple boards.
DOI: 10.1111/jfir.12058
Authors: Chang Liu, Donna L. Paul
Institutions: Hawaii Pacific University, Washington State University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W1925204475