External Networking and Internal Firm Governance

被引：612

作者：

Fracassi, Cesare ^{[1
]}

Tate, Geoffrey ^{[2
]}

机构：

[1] Univ Texas Austin, Austin, TX 78712 USA

[2] Univ Calif Los Angeles, Los Angeles, CA 90024 USA

来源：

JOURNAL OF FINANCE | 2012年 / 67卷 / 01期

关键词：

CORPORATE GOVERNANCE; DIRECTORS; ACQUISITIONS; OWNERSHIP; BOARDS; POWER;

D O I：

10.1111/j.1540-6261.2011.01706.x

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We use panel data on S&P 1500 companies to identify external network connections between directors and CEOs. We find that firms with more powerful CEOs are more likely to appoint directors with ties to the CEO. Using changes in board composition due to director death and retirement for identification, we find that CEO-director ties reduce firm value, particularly in the absence of other governance mechanisms to substitute for board oversight. Moreover, firms with more CEO-director ties engage in more value-destroying acquisitions. Overall, our results suggest that network ties with the CEO weaken the intensity of board monitoring.

引用

页码：153 / 194

页数：42

共 45 条

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