The value of independent directors: Evidence from sudden deaths

• 成果类型: Article
• 署名作者: Nguyen, Bang Dang; Nielsen, Kasper Meisner
• 署名单位: University of Cambridge; Hong Kong University of Science & Technology
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2010.07.004
• 发表日期: 2010
• 页码: 550-567
• 关键词: Independent director; Sudden death; Board of directors; corporate governance; Firm value

摘要

We investigate contributions of independent directors to shareholder value by examining stock price reactions to sudden deaths in the US from 1994 to 2007. We find, first, that following director death stock prices drop by 0.85% on average. Second, the degree of independence and board structure determine the marginal value of independent directors. Third, independence is more valuable in crucial board functions. Finally, controlling for director-invariant heterogeneity using a fixed effect approach, we identify the value of independence over and above the value of individual skills and competences. Overall, our results suggest that independent directors provide a valuable service to shareholders. (C) 2010 Published by Elsevier B.V.