Details

Autor(en) / Beteiligte

• Larcker, David F.
• So, Eric C.
• Wang, Charles C.Y.

Titel

Boardroom centrality and firm performance

Ist Teil von

• Journal of accounting & economics, 2013-04, Vol.55 (2-3), p.225-250

Ort / Verlag

Amsterdam: Elsevier B.V

Erscheinungsjahr

2013

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• Firms with central boards of directors earn superior risk-adjusted stock returns. A long (short) position in the most (least) central firms earns average annual returns of 4.68%. Firms with central boards also experience higher future return-on-assets growth and more positive analyst forecast errors. Return prediction, return-on-assets growth, and analyst errors are concentrated among high growth opportunity firms or firms confronting adverse circumstances, consistent with boardroom connections mattering most for firms standing to benefit most from information and resources exchanged through boardroom networks. Overall, our results suggest that director networks provide economic benefits that are not immediately reflected in stock prices.