Coopting the board through status differential
Project Description:
This is my proposed thesis topic, and I am on my fourth year working on it.
Research questions:
Do firms with high ownership concentration maintain control of their boards through appointing lower status independent directors (IDs)?
Do lower status board appointments cause worse firm outcomes?
I am using social network measures of status, using multiple relationships, multiple years, and weights for information access.
Project Duration:
11/2013 to 07/2019
Project Significance:
The independence of directors is a hallmark corporate governance provision but its effectiveness in curbing agency costs has limited evidence, with endogenous difficulties. I have an exogenous event and a unique data set in which I can investigate when and if independent directors effect finacial reporting.
Results Achieved:
in analysis phase now