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A Model of the Supply of Executives for Outside Directorships

Conyon, Martin and Read, L (2006) A Model of the Supply of Executives for Outside Directorships. Journal of Corporate Finance, 12 (3). pp. 645-659. ISSN 0929-1199

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Abstract

Why do firms allow their executives to accept outsidedirectorships? Are firms acting in the best interests of their shareholders by allowing them to do so? We develop a theoretical model where accepting an outsidedirectorship alters the CEO's effect on the value of the home firm. Our model illustrates that executives will choose to spend more time on external directorships than is optimal for the home firm. Our theoretical model is consistent with other recent empirical finance research on the effects of external directorships.

Item Type: Article
Journal or Publication Title: Journal of Corporate Finance
Uncontrolled Keywords: Corporate governance ; Firm performance ; Boards of directors
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Departments: Lancaster University Management School > Accounting & Finance
ID Code: 53926
Deposited By: ep_importer_pure
Deposited On: 26 Jun 2012 09:40
Refereed?: Yes
Published?: Published
Last Modified: 26 Jul 2012 20:19
Identification Number:
URI: http://eprints.lancs.ac.uk/id/eprint/53926

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