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

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_x - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)

CEP obor

AH - Ekonomie

OECD FORD obor

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Projekt

<a href="/cs/project/GAP402%2F11%2F1487" target="_blank" >GAP402/11/1487: Měnová politika, finanční stabilita a finanční krize</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2012

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Prague Economic Papers

ISSN

1210-0455

e-ISSN

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Svazek periodika

21

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

17

Strana od-do

470-486

Kód UT WoS článku

000313919600005

EID výsledku v databázi Scopus

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