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The market for non-executive directors: Does acquisition performance influence future board seats?

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journal contribution
posted on 08.02.2018, 10:56 by Svetlana Mira, Marc Goergen, Noel O'SullivanNoel O'Sullivan
This paper investigates whether non-executive directors associated with good (bad) board decisions are subsequently rewarded (penalized) in the market for directors. This question is addressed by assessing whether the post-acquisition performance of acquiring companies influences the number of non-executive directorships that non-executives involved in these acquisitions hold subsequent to the acquisition. We find that non-executives on the boards of acquirers that increase (omit or cut) their dividend subsequently hold more (fewer) non-executive directorships in listed companies. Our findings suggest that the non-executive labor market is efficient and rewards (penalizes) non-executives for good (bad) acquisitions.

History

School

  • Business and Economics

Department

  • Business

Published in

British Journal of Management

Volume

30

Issue

2

Pages

415 - 436

Citation

MIRA, S., GOERGEN, M. and O'SULLIVAN, N., 2018. The market for non-executive directors: Does acquisition performance influence future board seats?. British Journal of Management, 30 (2), pp.415-436.

Publisher

John Wiley & Sons Ltd on behalf of British Academy of Management © The Authors

Version

VoR (Version of Record)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) licence. Full details of this licence are available at: http://creativecommons.org/licenses/by-nc/4.0/

Acceptance date

22/01/2018

Publication date

2018-03-23

Notes

This is an Open Access article. It is published by Wiley under the Creative Commons Attribution-NonCommercial 4.0 International Licence (CC BY-NC 4.0). Full details of this licence are available at: https://creativecommons.org/licenses/by-nc/4.0/

ISSN

1045-3172

eISSN

1467-8551

Language

en