Do the board of directors' characteristics influence firm's performance? The US evidence

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F12%3A10295836" target="_blank" >RIV/00216208:11230/12:10295836 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.18267/j.pep.435" target="_blank" >http://dx.doi.org/10.18267/j.pep.435</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.18267/j.pep.435" target="_blank" >10.18267/j.pep.435</a>

Result language
angličtina
Original language name
Do the board of directors' characteristics influence firm's performance? The US evidence
Original language description
We examine the relationship of selected Board of Directors' characteristics and firm's financial performance. Using a sample of large U.S firms in 2005-2009, we find that the degree of insider ownership influences positively firm performance, because itreduces agency problems. The age of the Board of Directors matters, to a certain degree, as well. Younger members are probably willing to bear more risk and to undertake major structural changes to improve firm's future prospects. On the other hand, we find that independent directors reduce firm performance and this negative effect was even more important during the recent financial crisis. We suppose that independent directors prefer overly conservative business strategies in order to protect shareholders, but this goes at the cost of lower firm's performance. All in all, our results suggest that corporate governance is important for firm's financial performance.
Czech name
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Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Project
<a href="/en/project/GAP402%2F11%2F1487" target="_blank" >GAP402/11/1487: Monetary policy, financial stability and financial crisis</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2012
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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